Question

Time deposits are kept in which account?

• A. Term Deposit Account
• B. Savings Deposit Account
• C. Current Account
• D. None of these

Hint:

Time deposits, or fixed deposits, are kept in a term deposit account where the funds are locked for a specific period.

Answer 1

The Correct Option is A

Step 1: Understanding time deposits.
Time deposits, also known as fixed deposits, are funds deposited with a bank or financial institution for a specified period, earning interest at a fixed rate. These are not available for immediate withdrawal, unlike savings and current accounts.

Step 2: Analyzing the options.
(A) Term Deposit Account: Correct. Time deposits are typically kept in term deposit accounts where the money is locked in for a predetermined period.
(B) Savings Deposit Account: This is incorrect, as savings accounts allow for withdrawals at any time, unlike time deposits.
(C) Current Account: This is incorrect, as current accounts are designed for frequent transactions and do not involve time deposits.
(D) None of these: This is incorrect, as the correct answer is (A).

Step 3: Conclusion.
Time deposits are kept in a term deposit account. Therefore, the correct answer is (A) Term Deposit Account.