Theory question 109
Financial InstitutionsSection B (answer four questions only from this section)
Write notes on each of the following: (a) Savings account (b) Current account (c) Fixed deposit account
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(a) Savings account: meant for small savers; operated with a passbook or card; earns interest; withdrawals limited in number; cheques not issued; encourages saving.
(b) Current account: operated with cheque books; money withdrawable on demand; usually no interest paid and the bank charges fees; holders can get overdrafts; used mainly by businesses and organisations for payments.
(c) Fixed (time) deposit account: money deposited for a fixed period (e.g. 30, 90 days); earns higher interest than savings; cannot be withdrawn before maturity without notice or loss of interest; used for idle funds.
For each account give its main features and who uses it.