wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

You deposit ₹1,000 in a bank for one year at an interest rate of 5%. At the end of one year, you get ₹1,051 from the bank. However, you were allowed to withdraw this amount only at the end of the period you chose, which was one year.

Which of the following deposit schemes had you chosen?

A
Current deposit
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Fixed deposit
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
Recurring deposit
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Savings deposit
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B Fixed deposit
Under the fixed deposit scheme, a customer must deposit money for a fixed period and for a fixed interest rate.

For example, a customer deposits ₹1000 for one year at an interest rate of 5%. At the end of the year, the customer would get ₹ 1,000 (deposit amount) + ₹51 (interest rate) = ₹1,051. In a fixed deposit scheme, the customer can withdraw the money only after the fixed period or the maturity date. The maturity date is fixed before the customer deposits their money in the bank. Although the customer can withdraw the deposit money from the bank before the maturity date, they would not receive the interest money they are supposed to receive after the maturity date.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Forming Squares
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon