Distinguish between the following: Current account & Recurring deposit account

Distinguish between the following:
Current account & Recurring deposit account

ANSWER:


Basis of Difference
Current Account
Recurring Account
Meaning
It is opened by business people and others who do regular banking transactions.
In this type of account, people save a fixed amount regularly for a specific period.
Mode of withdrawing money
Withdrawal is made through cheques.
The customer cannot withdraw the money before the expiry of the fixed period.
Preferred by
It is preferred by businesspersons, firms and institutions.
It is preferred by fixed income group class.
Restriction on number of withdrawals
There are no restrictions on the number of withdrawals till the balance in the customer’s account is more than that required.
The customer can receive the amount only after the expiry of the specified period.
Interest rate
No interest is given.
Interest rate is comparatively higher than that given in the savings account but less than that given in the fixed deposit account.
Overdraft facility
Overdraft facility is given.
Overdraft facility is not given.