What Are Current And Fixed Deposit Accounts?

Current Account: - usually businessmen operate Current account. Earlier it could be opened with a minimum of five hundred rupees but now a minimum of two thousand is needed. Even some banks require five thousand rupees to open it. It can be operated any number of times a day. Unlike savings account there is no upper limit of the withdrawal. This account serves the businessmen as if his cashier is sitting at the bank and dealing in his checks. A nominal interest may be offered on the balance of account. The account is not subject to zakat ( it is in Islam). Here too, if the balance falls below a certain sum, the bank fines the accountholder at a specified rate.

Fixed deposit Account; - This account is opened for a definite period of time without the expiry of which the amount cannot be withdrawn. The rate of interest is higher than that of savings account. The greater the period for which money is deposited the higher the interest rate is offered. The period ranges from three month to ten years. It is usually operated by widows, pensioners, salaried persons, etc. to get regular income. In Pakistan, this account is subject to Zakat deduction.