Distinguish between the following:
Savings account & Fixed account
ANSWER:
Basis of Difference
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Savings Account
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Fixed Account
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Meaning
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It is opened by individuals who wish to save some part of their income.
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It is an account in which a definite sum of money is deposited for a fixed period.
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Mode of withdrawing money
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It is done through cheques or withdrawal slips.
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The customer can withdraw the amount only after the expiry of the fixed period.
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Preferred by
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It is preferred by salaried people.
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It is preferred by people who have idle cash.
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Interest given
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Low rate of interest is given.
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High rate of interest is given.
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Restriction on number of withdrawals
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There are certain restrictions on the number of withdrawals
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There are restrictions in the sense that the customer can withdraw the amount only after the expiry of the fixed period.
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Nature of account
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It is continuous in nature.
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90% of the amount is given as loan.
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