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What primarily differentiates a Recurring Deposit (RD) from a Savings Account?

easy Q2 of 15
Banking Awareness - Types Of Bank Accounts
What primarily differentiates a Recurring Deposit (RD) from a Savings Account?
ARD requires fixed monthly deposits, savings account does not
BSavings account has a fixed tenure
CRD allows unlimited withdrawals
DSavings account earns no interest
Step-by-Step Solution

  1. Step 1: Identify deposit pattern.

    RD needs regular monthly instalments.

  2. Step 2: Compare with savings account.

    Savings accounts have no compulsory monthly deposit.

  3. Final Answer:

    RD requires fixed monthly deposits, savings account does not → Option A

  4. Quick Check:

    Monthly commitment = RD ✅
Quick Trick: Monthly saving habit points to RD.
Common Mistakes:
  • Assuming savings accounts also need fixed monthly deposits.
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