BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Both Savings Accounts and Fixed Deposit accounts
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Savings account and Current Accounts
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Both Savings and Loan Accounts
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Both savings bank accounts and cash accounts only
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Detailed explanation-1: -Both savings bank accounts and cash accounts only.
Detailed explanation-2: -What is current account? Essentially, a current account is a deposit account that allows you to make payments in the form of cheques which is a major factor that helps distinguish between savings bank account and current account.
Detailed explanation-3: -Banks don’t issue debit cards for savings accounts; they rarely allow you to write checks for payments and purchases from savings.
Detailed explanation-4: -Standard current accounts generally have no fees and come with a cheque book and/or a debit card. A standard current account may also offer an overdraft facility, which you will generally have to pay interest on.
Detailed explanation-5: -A savings account is most suitable for people who are salaried employees or have a monthly income, whereas, Current Accounts work best for traders and entrepreneurs who need to access their accounts frequently. Savings accounts earn interest at a rate of around 4%, while there is no such earning from a Current Account.