Commercial Applications
In this account, the account holder is required to deposit a specific amount every month. After the expiry of the specified period, the depositor gets back his money together with interest thereon.
- Current account
- Recurring deposit account
- Saving account
- None of these
Answer
Recurring deposit account
Reason — A Recurring Deposit Account is a savings plan in which the account holder deposits a specific amount every month for a fixed period (12 to 72 months). On maturity, the depositor gets back the total amount together with interest. A pass book is issued but no cheque book.
Related Questions
A bank offers the following options to its customers:
- Fixed Deposit Account: 7% interest, withdrawal only after maturity.
- Savings Account: 4% interest, withdrawal anytime.
- Recurring Deposit Account: 6% interest, regular monthly deposits.
Which account type should a customer choose if they need to withdraw money regularly and also want to maximize interest?
- Fixed Deposit Account
- Savings Account
- Recurring Deposit Account
- None of the above
An …………… is a cheque which is payable across the counter of the bank.
- Open cheque
- Pay-in slip
- Crossed cheque
- Bank draft
Which of the following options is/are correct statement(s)?
Statement 1: The Reserve Bank of India (RBI) acts as the banker's bank and manages the country's monetary policy.
Statement 2: The Industrial Finance Corporation of India (IFCI) is responsible for controlling the country's monetary policy.
- Only Statement 1 is correct
- Only Statement 2 is correct
- Both statements are correct
- Both statements are incorrect
…………… is a Banker's Bank.
- Commercial Bank
- Agricultural Bank
- Exchange Bank
- Central Bank