[Solved] Which key difference correctly distinguishes a Fixed Deposit (FD) from a Recurring Deposit (RD)? — Ans: FD involves a lump-sum deposit, while RD involves monthly instalments | Banking Awareness

Banking Awareness - Types Of Bank Accounts

Which key difference correctly distinguishes a Fixed Deposit (FD) from a Recurring Deposit (RD)?

AFD involves a lump-sum deposit, while RD involves monthly instalments

BFD is a demand deposit, while RD is a current account

CRD earns no interest, while FD earns interest

DRD has fixed tenure, while FD has no tenure

Step-by-Step Solution

Step 1: Identify deposit method.
FD requires depositing the entire amount at once.
Step 2: Compare with RD.
RD requires fixed monthly instalments over a period.
Final Answer:
FD involves a lump-sum deposit, while RD involves monthly instalments → Option A
Quick Check:
Lump-sum vs monthly saving = FD vs RD ✅

Quick Trick: One-time deposit = FD; monthly deposit = RD.

Common Mistakes:

MISTAKES

Master "Types Of Bank Accounts" in Banking Awareness

Start learning the concept with an interactive lesson.

More Banking Awareness Quizzes

Which key difference correctly distinguishes a Fixed Deposit (FD) from a Recurring Deposit (RD)?