Question

Your friend has received a sum of Rs. 10000 from his grandparents. He wants to deposit this
sum in a bank under a condition of not to withdraw fully or partially for at least two years. He
will be needed to open which type of account in the bank ?
(A) Small savings account
(B) Current account
(C) Fixed deposit account
(D) Demat account
(E) None of these

Answer 1

The answer is

(C) Fixed Deposit account

When you have a certain amount of money and you don't need to use it urgently, then you should open a fixed deposit account. You get higher rate of interest as compared to other options.