Question

From which type of deposits, money can be withdrawn only after the maturity date?

Options

• Savings account

• Current account

• Recurring deposit account

• Fixed deposit account

Answer 1

Fixed deposit account

Explanation:

Fixed Deposits (or time deposits) are those deposits which can be withdrawn only after the expiry of a certain fixed period. Money is deposited for a fixed period of time, which generally ranges between 7 days and 10 years. These deposits carry the highest rate of interest. The longer the period, the higher will be the rate of interest.