Question

Geeta has Rs.20,000 in her account. He doesn’t have any use of these for two years. To earn

more interest which type of bank account she would be opened with the bank?

(a) Recurring Deposit

(b) Fixed Deposit

(c) Current Account

(d) Saving Account​

Answer 1

Answer:

maybe (b)

Explanation:

As it can be made a fixed deposit for 2 years

Answer 2

(b) Fixed Deposit

• A Savings account will earn one an average of 4% - 5% annual interest whereas, Fixed deposits render 7% interest annually.
• A Recurring Deposit will earn an interest of 2.50% - 6.50% which is lower in general than a fixed deposit.
• It is unclear what the general rate of interest is for a current account.
• This gives us a clear answer, Geeta should open a fixed deposit account. There are two reasons for this:

1. She will get the best interest rate out of all the available options, and
2. She already has a lumpsum amount which is ideal for this kind of account.

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