Distinguish between:
Current Deposit and Recurring Deposit.
Current Deposit and Recurring Deposit.
'The difference between the current deposit account and recurring deposit account are as follows: 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 whereas a recurring deposit account refers to the type of bank
account where a fixed sum of money is deposited in the bank in monthly installment for a fixed period of time.
2. The current deposit account has nominal
rate of interest irrespective of the sum of money deposited whereas the rate of interest is quite high in recurring deposit account as it is
directly proportional to the sum of money deposited.
3. The current deposit
account can be operated with lesser sum of money while recurring deposit account requires a high sum of money in monthly installments to be operated.
4. The current deposit account is of continuous
nature and can be operated for any number of years while in recurring deposit account, the sum of money after total deposit is made in the bank, is paid to the depositor after a fixed period along with the accrued interest.
5. In current deposit
account withdrawals are allowed throughout the tenure of the account whereas in recurring deposit account, withdrawals are not permitted until the expiry of the fixed period.\'
'
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 whereas a recurring deposit account refers to the type of bank account where a fixed sum of money is deposited in the bank in monthly installment for a fixed period of time.
2. The current deposit account has nominal
rate of interest irrespective of the sum of money deposited whereas the rate of interest is quite high in recurring deposit account as it is
directly proportional to the sum of money deposited.
3. The current deposit
account can be operated with lesser sum of money while recurring deposit account requires a high sum of money in monthly installments to be operated.
4. The current deposit account is of continuous nature and can be operated for any number of years while in recurring deposit account, the sum of money after total deposit is made in the bank, is paid to the depositor after a fixed period along with the accrued interest.
5. In current deposit account withdrawals are allowed throughout the tenure of the account whereas in recurring deposit account, withdrawals are not permitted until the expiry of the fixed period.\'
