Question

Overdraft facility is granted in ________ account.

• A. Fixed deposit
• B. Current
• C. Saving
• D. None of these

Answer 1

The correct option is B Current

Current Account is opened by businesses who have a higher number of transactions. There is no restriction on the number of times deposits or withdrawals can be made. Current account does not earn any interest on the money deposited. Overdraft facility is granted in this account as the businesses may run out of money in their current account for various reasons.

Savings account and Recurring deposit account are opened for the purpose of saving. Transactions in these accounts are restricted. No overdraft facility is available on these accounts.