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Which deposit generally offers the highest rate of interest among basic deposit types?

medium Q14 of 15
Banking Awareness - Basics Of Banking & Banking Terminology
Which deposit generally offers the highest rate of interest among basic deposit types?
ASavings Deposit
BCurrent Deposit
CDemand Deposit
DFixed Deposit
Step-by-Step Solution

  1. Step 1: Compare interest levels

    Higher interest is offered when funds are locked for longer periods.

  2. Step 2: Identify suitable deposit

    Fixed deposits lock funds for a fixed tenure.

  3. Final Answer:

    Fixed Deposit → Option D

  4. Quick Check:

    Longer lock-in earns higher interest ✅
Quick Trick: Long lock-in = higher interest.
Common Mistakes:
  • Assuming savings deposits offer high interest.
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