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Questions
Distinguish between:
Fixed Deposit Account and Recurring Deposite Account.
Give one difference between Fixed deposit and Recurring deposit.
State one difference between fixed deposit account and recurring deposit account.
Differentiate between:
Fixed Deposit and Recurring Deposit.
Distinguish between Fixed Deposit Account and Recurring Deposit Account.
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Solution
|
Sr. No. |
Basis of Difference |
Fixed Deposit Account |
Recurring Deposit Account |
|
1.
|
Meaning |
It is an account where a fixed sum of money is deposited for a fixed period. |
It is an account where depositors can regularly save a fixed amount for a specific period. |
|
2. |
Withdrawals |
Customers cannot withdraw during the fixed period. If withdrawn earlier, the rate of interest will be less than applicable. |
Customers cannot withdraw during the fixed period. If withdrawn earlier, the rate of interest will be less than applicable. |
|
3. |
Facilities |
The bank gives a fixed deposit receipt to the customers |
The bank gives you a passbook and pay-in slip. |
|
4. |
Who takes it |
It is suitable for any person with temporarily idle cash. |
It is suitable for fixed-income groups. |
|
5.
|
Constraints on operation and withdrawals |
Payment is received only on the expiry of the fixed period. If withdrawn earlier, the rate of interest will be less than applicable. |
Payment is received after the expiry of the fixed period. |
|
6. |
Rate of interest |
The interest rate is higher. The longer the period, the higher the rate of interest. |
The rate of interest is higher than a savings account but less than a fixed deposit account |
|
7. |
Nature of Account |
90% of the amount of the fixed deposit can be given as a loan. |
90% of the amount in the account can be given as a loan |
|
8. |
Facilities |
It is for a fixed period of time except when the fixed deposit receipt is renewed. |
It is for a fixed period of time. |
Notes
Students should refer to the answer according to their questions.
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