Question

Define or explain the following concepts.
Current Deposits.

Answer 1

Current deposit account is a type of bank account which is opened by the people in order to do business transactions which is why it is also known as business account. In this type of bank account, withdrawals can be made throughout the tenure of the account without any notice in order to keep the efficient flow of business transactions so that there is no delay in business decisions.

Moreover, holders of this account can avail overdraft facility but the rate of interest is very nominal in such type of accounts as these are open for transaction purpose and not for savings and investment purpose.