Aman wants to buy a motor bike worth Rs. 60000. He does not have enough money, so he plans to buy it after one year. He has a regular income, so he decides to deposit Rs. 5000 every month.

What type of bank account is appropriate for such type of a transaction?

Savings bank account

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Current account

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Recurring deposit account

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Term deposit account

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Solution

The correct option is C Recurring deposit account
Recurring deposit accounts are used for saving for a future date, with regular deposits on a monthly basis. The depositor gets the total deposited amount along with the interest after a certain period of time. The interest rates can also vary from bank to bank. At present, the rates are between 3.5% to 6%.

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Aman wants to buy a motor bike worth Rs. 60000. He does not have enough money, so he plans to buy it after one year. He has a regular income, so he decides to deposit Rs. 5000 every month. What type of bank account is appropriate for such type of a transaction?

Aman wants to buy a motor bike worth Rs. 60000. He does not have enough money, so he plans to buy it after one year. He has a regular income, so he decides to deposit Rs. 5000 every month.

What type of bank account is appropriate for such type of a transaction?