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It is a type of saving bank account in which excess of a particular limit gets automatically transferred to fixed deposit account.
- a)Multiple deposit option accoun
- b)Current account
- c)Recurring deposit account
- d)Salary account
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
It is a type of saving bank account in which excess of a particular li...
Multiple Option Deposit Account: A lot of banks have recently introduced this type of bank account. It is a type of Savings Account in which deposit in excess of a particular limit gets automatically transferred into Fixed Deposit.
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It is a type of saving bank account in which excess of a particular li...
Multiple Deposit Option Account
A Multiple Deposit Option Account (MDOA) is a type of savings bank account that offers automatic transfers of excess funds to a fixed deposit account. This account provides a convenient way for individuals to maximize their savings by earning higher interest rates on their idle funds.
Features of Multiple Deposit Option Account:
1. Savings Account: The MDOA account functions as a regular savings account where individuals can deposit and withdraw money as per their needs. It offers the benefit of liquidity and access to funds whenever required.
2. Auto Transfer: The unique feature of an MDOA account is that it automatically transfers the excess amount above a specified limit to a fixed deposit account. This limit is predetermined by the account holder and can be adjusted as per their preference.
3. Fixed Deposit: The excess funds transferred from the MDOA account are invested in a fixed deposit account. Fixed deposits offer higher interest rates compared to regular savings accounts, allowing individuals to earn more on their savings.
4. Tenure and Interest: The fixed deposit created from the auto transfers has a specific tenure and interest rate determined at the time of account opening. The interest earned on the fixed deposit is generally higher than that of a regular savings account, helping individuals grow their savings faster.
5. Flexibility: MDOA accounts provide flexibility to the account holders. They can choose the amount they want to keep as a balance in the savings account and the threshold limit above which the excess amount gets transferred to the fixed deposit account.
6. Benefits: By automatically transferring excess funds to a fixed deposit account, MDOA accounts encourage individuals to save more. It ensures that idle funds are invested in a lucrative financial instrument, allowing individuals to earn higher returns on their savings.
Conclusion:
A Multiple Deposit Option Account is a type of savings bank account that automatically transfers excess funds above a specified limit to a fixed deposit account. This account provides individuals with the opportunity to earn higher interest rates on their savings, helping them grow their wealth over time. It offers the benefits of liquidity, flexibility, and convenience, making it an attractive option for individuals looking to maximize their savings.
A Multiple Deposit Option Account (MDOA) is a type of savings bank account that offers automatic transfers of excess funds to a fixed deposit account. This account provides a convenient way for individuals to maximize their savings by earning higher interest rates on their idle funds.
Features of Multiple Deposit Option Account:
1. Savings Account: The MDOA account functions as a regular savings account where individuals can deposit and withdraw money as per their needs. It offers the benefit of liquidity and access to funds whenever required.
2. Auto Transfer: The unique feature of an MDOA account is that it automatically transfers the excess amount above a specified limit to a fixed deposit account. This limit is predetermined by the account holder and can be adjusted as per their preference.
3. Fixed Deposit: The excess funds transferred from the MDOA account are invested in a fixed deposit account. Fixed deposits offer higher interest rates compared to regular savings accounts, allowing individuals to earn more on their savings.
4. Tenure and Interest: The fixed deposit created from the auto transfers has a specific tenure and interest rate determined at the time of account opening. The interest earned on the fixed deposit is generally higher than that of a regular savings account, helping individuals grow their savings faster.
5. Flexibility: MDOA accounts provide flexibility to the account holders. They can choose the amount they want to keep as a balance in the savings account and the threshold limit above which the excess amount gets transferred to the fixed deposit account.
6. Benefits: By automatically transferring excess funds to a fixed deposit account, MDOA accounts encourage individuals to save more. It ensures that idle funds are invested in a lucrative financial instrument, allowing individuals to earn higher returns on their savings.
Conclusion:
A Multiple Deposit Option Account is a type of savings bank account that automatically transfers excess funds above a specified limit to a fixed deposit account. This account provides individuals with the opportunity to earn higher interest rates on their savings, helping them grow their wealth over time. It offers the benefits of liquidity, flexibility, and convenience, making it an attractive option for individuals looking to maximize their savings.
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It is a type of saving bank account in which excess of a particular li...
Current account
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It is a type of saving bank account in which excess of a particular limit gets automatically transferred to fixed deposit account.a)Multiple deposit option accounb)Current accountc)Recurring deposit accountd)Salary accountCorrect answer is option 'A'. Can you explain this answer?
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