Under which type of deposit, the account holder gets the maximum rate of interest?
Under which type of deposit, the account holder gets the maximum rate of interest?
(a) Current Account Deposit
(b) Saving Account Deposit
(c) Fixed Deposit
(d) All of these
Anurag Pathak Changed status to publish January 4, 2024
Ans – (c)
Explanation:-
There are three types of deposit accounts opened by commercial banks
1. Savings Account
2. Current Account
3. Time Deposits
The money in the time deposits is fixed for a certain period of time. Account holders can not withdraw as per demand.
Thus, Commercial banks can use this money for investment purposes and earn high returns.
That’s why commercial bank offers high rates of interest on time deposits.
Savings and current accounts are demand deposits and account holders can withdraw money on demand.
Thus, the rate of interest is less on savings accounts.
Generally, no interest is allowed on the current account due to the high transactions of the business. Rather, the bank charges from the customer to maintain it.
Anurag Pathak Changed status to publish January 4, 2024
