Distinguish between the following:

Savings account & Fixed account

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Solution

Difference between Savings Account and Fixed Account

Basis of Difference Savings Account Fixed Account

Meaning It is opened by individuals who wish to save some part of their income. It is an account in which a definite sum of money is deposited for a fixed period.

Mode of withdrawing money It is done through cheques or withdrawal slips. The customer can withdraw the amount only after the expiry of the fixed period.

Preferred by It is preferred by salaried people. It is preferred by people who have idle cash.

Interest given Low rate of interest is given. High rate of interest is given.

Restriction on number of withdrawals There are certain restrictions on the number of withdrawals There are restrictions in the sense that the customer can withdraw the amount only after the expiry of the fixed period.

Nature of account It is continuous in nature. 90% of the amount is given as loan.

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