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Types of Deposits

The following are some of the deposit schemes available in banks:

1.           Current Account
2.           Savings Account
3.           Term Deposit/Fixed Deposit/ Recurring Deposit Account
4.           Multi Option Deposit Account

The first three accounts were already discussed in Class XI and the last type is discussed below:


Multi Option Deposit Scheme is a term deposit which is not fixed at all and comes with a unique break-up  facility which provides full liquidity as well as benefit of higher rate of interest, through the savings bank account. One can also keep that deposit intact by availing an overdraft facility, to meet occasional temporary funds requirements. Individual banks have their own deposit schemes to suit the current as well as future needs of the people. You may visit nearby branches of the banks and collect information about different types of deposit accounts to ascertain the comparative advantages and limitations of the different types of deposit schemes.