Banking Awareness - Types Of Bank Accounts
Which deposit category mainly offers higher interest rates due to restricted liquidity?
Which deposit category mainly offers higher interest rates due to restricted liquidity?
easy Q3 of 15
Step-by-Step Solution
Step 1: Compare liquidity.
Restricted withdrawal increases bank usability of funds.Step 2: Identify the deposit type.
Time deposits lock money for a period.Final Answer:
Time deposit → Option DQuick Check:
Lower liquidity = higher return = Time Deposit ✅
Quick Trick: Lock-in increases interest.
Common Mistakes:
MISTAKES- Assuming savings accounts give higher returns.
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