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Question
Differentiate between current deposit account and fixed deposit account.
Solution
| Basis of Comparison | Current deposit Account | Fixed deposit account | |
| 1. | Object | To carry on business dealings. | To earn interest. |
| 2. | Period of deposit | There is no fixed period. | Fixed period. |
| 3. | Frequency of deposits | Any number of times. | Only one at a time. |
| 4. | Number of withdrawals | There is no restriction on the number of withdrawals. | On maturity date. |
| 5. | Cheque book facility | Allowed. | Not allowed. |
| 6. | Interest | No interest, but a bank charge. | High rate. |
| 7. | Overdraft facility | Available. | Not available. |
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