Banking Awareness - Types Of Bank Accounts
Which type of deposit generally offers higher interest but lower liquidity?
Which type of deposit generally offers higher interest but lower liquidity?
easy Q12 of 15
Step-by-Step Solution
Step 1: Compare liquidity and returns.
Higher returns usually come with restrictions.Step 2: Identify the deposit type.
Time deposits lock money for a fixed period.Final Answer:
Time deposit → Option BQuick Check:
Fixed tenure + higher interest = Time Deposit ✅
Quick Trick: Higher return usually means time deposit.
Common Mistakes:
- Assuming demand deposits give higher returns.
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