State four types of deposits.(CLASS XII) (OCM)

 

The different types of deposits are explained below. 

1) Fixed Deposit: A fixed deposit account is an account where a fixed amount is kept for a fixed period of time bearing a fixed interest rate. The rate of interest is more as compared to a savings bank account and varies with the deposit period 

2) Recurring Deposit: It is operated by salaried persons and businessmen having a regular income. A certain fixed sum of money is deposited into the account every month. 

3) Saving Account Deposit: It is generally operated by those who earn regular or fixed income such as salary or wages. 

4) Current Account: Deposit This account is operated by business firms and other commercial organizations such as hospitals, educational institutions, etc. who have regular banking transactions.