Fathima draws a monthly salary and plans to invest a small amount every month. She expects to receive interest at the time of maturity. Which among the following deposit schemes must Fathima choose?

Current deposit

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Fixed deposit

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Recurring deposit

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Savings deposit

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Recurring deposit
A recurring deposit is similar to a fixed deposit, except the customer is allowed to invest multiple times here. For instance, one can choose to deposit ₹100 every month for 10 months. The depositor would receive an interest that is significantly more than what one would receive from a savings deposit.

In case of recurring deposits, the interest rate is higher than that of saving deposits, but less than fixed deposits.

Suggest Corrections

Similar questions

Mrs. Rita deposits ₹1600 every month in recurring deposit account at 9% p.a. simple interest. She receives ₹65,592 at the time of maturity. What is the total time for which the account was held?

Q. Ms. Mala deposited Rs. 1500 per month in a Recurring Deposite Scheme of a bank for 9 months. If she get Rs. 675 as interest at the time of maturity, find the rate of interest, if the interest is calculated at the end of each month. Find also the maturity value of the deposits.

Q. Mr.Abhishak saves

R s . 1000

every month and saves in recurring deposit scheme paying simple interest

10 %

per annum. In order to receive a total amount of

R s . 5776

, how many installments must be deposits ?

Q. Anuradha invests INR 500 every month in a recurring deposit scheme for 3 years . the interest earned is INR2220. find the rate of interest and the maturity value of the investment.

Mrs. Rita deposits Rs 1600 every month in recurring deposit account at 9% p.a. simple interest. She receives Rs 65,592 at the time of maturity. What is the total time for which the account was held?

Join BYJU'S Learning Program