Fewpal
0 votes
7 views
in Home Science by (51.1k points)
closed by

Money Management is the key to financial security. In this context  Briefly explain the following 

1. Fixed deposit account. 

2. Recurring deposit account.

1 Answer

+1 vote
by (43.2k points)
selected by
 
Best answer

(i) Fixed Deposit Account: Deposits which are made for a specified period and whose amount cannot be withdrawn before the expiry. These deposits are repayable, but only after the expiry of a fixed period. Such as one year, 5 years etc. Fixed deposits are also known as Long-Term Deposits. For such long-term investment higher rate of interest is offered. Larger the time period of the deposit higher will be the rate of interest. 

Importance: 

1. These are very flexible in nature. 

2. Fixed deposits offers guaranteed returns. The interest rate is also higher. 

(ii) Recurring Deposit Account: Started for those persons who cannot make large deposits. It is started to encourage such people. Such type of accounts can be open with a small amount for a specified period. When the time period ends the depositor gets his money with an interest. A passbook is also issued to the person who deposits his money time to time. He can check how much he deposits in the bank by checking his passbook.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...