Saving accounts are opened to encourage the people to save money and collect their savings. It enables the depositor to earn income by way of saving bank interest. Most businessmen use saving accounts by linking with Current Account.
Current bank account is opened by business men who have a higher number of regular transactions with the bank. Customers can use cheque for both cash in/cash out transactions.
The term ‘fixed deposit’ means that money is deposited for a fixed period. The interest rate of fixed deposit is higher than other deposit accounts; therefore fixed deposit accounts are opened by the customers who are interested to save extra money and the parents who would like to save money for their children.
Remarks: Interest will be calculated to the nearest of respective terms if premature withdrawal.