Question

Distinguish between the following:

Current account & Recurring deposit account

Answer 1

Difference between Current Account and Recurring Deposit Account
Basis of Difference	Current Account	Recurring Account
Meaning	It is opened by business persons and others who do regular banking transactions.	In this type of account, people save a fixed amount regularly for a specific period.
Mode of withdrawing money	Withdrawal is made through cheques.	The customer cannot withdraw the money before the expiry of the fixed period.
Preferred by	It is preferred by businesspersons, firms and institutions.	It is preferred by fixed income group class.
Restriction on number of withdrawals	There are no restrictions on the number of withdrawals till the balance in the customer’s account is more than that required.	The customer can receive the amount only after the expiry of the specified period.
Interest rate	No interest is given.	Interest rate is comparatively higher than that given in the savings account but less than that given in the fixed deposit account.
Overdraft facility	Overdraft facility is given.	Overdraft facility is not given.