Ramu wants to save money for his daughter's marriage in future. The type of Bank account you suggest him to open is ______.

Savings Bank Account

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Recurring Deposit Account

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Current Account

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Term Deposit Account

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Solution

The correct option is B Recurring Deposit Account
Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits. It is similar to making FDs of a certain amount in monthly installments, for example ₹ 1000 every month. This deposit matures on a specific date in the future along with all the deposits made every month. Thus, Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time.

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