Banking · Types of Accounts
The core function that distinguishes a Current Account (CA) from a Savings Account is that a CA primarily allows for:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Compulsory maintenance of a zero balance to encourage high liquidity.
- 2Automatic conversion into a Fixed Deposit upon reaching a balance of 1 lakh rupees.
- 3Unlimited transactional freedom (deposits and withdrawals) without earning interest on the balance.✓
- 4Higher interest earnings due to fixed-term deposits.
Correct answer
Unlimited transactional freedom (deposits and withdrawals) without earning interest on the balance.
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