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Question
Distinguish between the following:
Savings account & Fixed account
Distinguish Between
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Solution
| Basis of Difference |
Savings Account | Fixed Account |
| Meaning | It is opened by individuals who wish to save some part of their income. |
It is an account in which a definite sum of money is deposited for a fixed period. |
| Mode of withdrawing money |
It is done through cheques or withdrawal slips. |
The customer can withdraw the amount only after the expiry of the fixed period. |
| Preferred by | It is preferred by salaried people. |
It is preferred by people who have idle cash. |
| Interest given | Low rate of interest is given. |
High rate of interest is given. |
| Restriction on number of withdrawals |
There are certain restrictions on the number of withdrawals |
There are restrictions in the sense that the customer can withdraw the amount only after the expiry of the fixed period. |
| Nature of account |
It is continuous in nature. | 90% of the amount is given as loan. |
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