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Questions
Compare the rate of interest given to such an account to that of a Current Account and a Fixed Deposit.
Compare the interest rates as given by the bank on saving, current and fixed deposits.
Solution
- Deposits in saving and current accounts are payable by the bank on demand.
- Saving account deposits carry low interest rate, whereas no interest is paid on current account deposits.
- But fixed deposits earn high interest rates, as they are deposited for a specified fixed period of time. Bank can lend this money to others.
Notes
Students should refer to the answer according to their questions.
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