Question

Overdraft facility is given to ________.(Fill in the blank by choosing correct option) a) Savings account b) Current account c) Fixed account.

Answer 1

Overdraft facility is given to: a) Saving Account.  

Although, businessmen can take overdrafts on current accounts as well.

A Savings Account is an account which holds deposits at modest interest rates.

The holder is required to maintain a minimum amount in his account so as to avoid the bank charging fees for lack of funds.

The number of withdrawals are usually subject to the institution's policies regarding the same.