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Which situation is most suitable for opening a fixed deposit account?

medium Q5 of 15
Banking Awareness - Types Of Bank Accounts
Which situation is most suitable for opening a fixed deposit account?
AParking surplus money for a fixed period
BDaily business transactions
CMonthly savings from salary
DFrequent withdrawals for expenses
Step-by-Step Solution

  1. Step 1: Understand usage need.

    FD suits funds not required immediately.

  2. Step 2: Match with correct scenario.

    Surplus money parked for a period fits FD.

  3. Final Answer:

    Parking surplus money for a fixed period → Option A

  4. Quick Check:

    Idle funds + fixed time = FD Account ✅
Quick Trick: Surplus funds are ideal for FD.
Common Mistakes:
  • Using FD for regular expense management.
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