If I'd like to take 1000 and put it into a savings account for a long period of time in the hopes of earning a higher interest rate and making my money grow, which type of account should I choose?

Question

Business

Rishi Schmidt

1 May, 01:55

If I'd like to take 1000 and put it into a savings account for a long period of time in the hopes of earning a higher interest rate and making my money grow, which type of account should I choose?

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Answers (1)

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Angelique Duke · Answer 1

Fixed Deposit Account

Explanation:

Commercial Banks perform this crucial role of accepting deposits & advancing loans.

3 Types of Deposits:

Current Account - Used by businesses, has liberal depositing & withdrawal rules for payments & receipts, negligible interest by bank (rather bank charges for their service).

Savings Account - Used by households, for normal savings, has deposit & withdrawal rules less free than current account, moderate interest rate by bank.

Fixed Deposit Account - Used for Long Term savings, strict withdrawal rules before maturity (interest lost if withdrawn), high interest rate & money growth.

So, If need is to save money foe long period & letting it grow meanwhile, Fixed Deposit Account is a suitable Account.