definition of current account, savings account, recurring deposit, and fixed deposit?
Answers
Answer:
an account at a bank or building society from which money may be withdrawn without notice, typically an active account catering for frequent deposits and withdrawals by cheque.
savings account is a deposit account held at a retail bank that pays interest but cannot be used directly as money in the narrow sense of a medium of exchange These accounts let customers set aside a portion of their liquid asets while earning a monetary return.
recurring deposit is a special kind of term deposit offered by banks which help people with regular incomes to deposit a fixed amount every month into their recurring deposit account and earn interest at the rate applicable to fixed deposits.
fixed deposit (FD) is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. .
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Answer:
The savings account do not offer any tax benefit whereas FDs and RDs do. With a RD you get a tax benefit if your interest earned is up to 10,000. Interest earned on your savings account are completely taxable whereas interest earned on FD is mostly taxable and it is included under TDS by most of the banks.