Question

Which among the following accounts fetch the highest rate of interest?
(A) Saving Deposits
(B) Recurring Deposits
(C) Fixed Deposits
(D) Current Deposits

Answer 1

Hint:Saving Deposits, Recurring Deposits, Fixed deposits and Current Deposits are the investment instruction which was offered by several banking and non-banking financial companies. In this we have to check which account fetches the highest interest rate.

Complete step-by-step answer:
We can check what the following accounts defines,
(A) Saving Deposits :- A Savings Account is an interest-bearing deposit account held at a bank or other financial institution. Though these accounts typically pay a modest interest rate, their safety and reliability make them a great option for parking cash you want available for short-term needs.

(B) Recurring Deposits :- A Recurring Deposit, commonly known as RD, is a unique term-deposit that is offered by Indian Banks. It is an investment tool which allows people to make regular deposit factors and an interest compound. The interest rates are higher than Savings Account.

(C) 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.

(D) Current Deposits :- It refers to a deposit to a bank account or financial institution without a specified maturity date. These types of Current Deposit account generally only earn demand deposit interest.

Hence,
Fixed Deposits (FD) offers the highest rate of interest, ranging from $4$ to $7.25$ percent.

So, the correct answer is “Option C”.

Note:Recurring Deposits has higher interest than Saving Deposits.Fixed Deposits has higher interest than Savings, Recurring and current deposits.