NABTEB QUESTIONS

Describe the THREE main types of accounts a customer can keep with a bank. – NABTEB QUESTION

The main types of account with a commercial bank:

i. Savings account: It is an account operates with a pass-book. A little amount of money is required to open a savings account it earns monthly interest. The account is popular among low income earners.

ii. Current Account: Money is normally paid in with a pay-in-slip. Money is withdrawable by cheque. The account is usually operated by business men and workers. The account does not earn interest, instead the owner pays some commission to the bank.

iii. Fixed Deposit Account: this is an account for large sums of money which people and organizations do not need for present use. The account earns a high rate of interest and money is withdrawable only on due date.

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