Question

Which of these are known as term/time deposits?

Options

• Fixed deposits and current accounts

• Current account and savings account

• Recurring deposits and fixed deposits

• Recurring deposits and savings account

Answer 1

Recurring deposits and fixed deposits

Explanation:

Term/Time Deposits are deposits made for a particular period of time that cannot be withdrawn before the term ends without paying penalties. There are two types of term deposits:

1. Fixed Deposits (FDs)
2. Recurring Deposits (RDs)

Current and savings accounts are not term deposits; instead, they are called demand deposits, which allow the account holder to withdraw funds at any time.