Question

compare and contrast each of the following giving proper explanation about their feuters and uses:

a)saving sight account, demand deposit account, and oversight facility

b)saving account and time deposit account

c)credit card and charge card

Answer 1

a) Saving sight account is used to manage savings.It provides interest on the balance maintained with the bank.It provides atm and cheque facility also while in demand deposit account are checking accounts which helps us in earning interest on amount deposited and the amount can be withdrawn at any time.Oversight facility is basically management of bank accounts by bank manager and it involves checking of everything by proper officer before execution.It is a kind of facility provided by bank to its customer.

b) Saving account is a account maintained with bank in to order to deposit savings and it can be withdrawn at any time and interest for balance maintained with bank is provided however time deposit account is used to deposit money for certain period with no withdrawal in between that period.Interest rate in time deposit is more in comparison to savings account.

c) Credit card generally have predetermined credit limit however charge charge card generally have no limits.In case of charge card there is no interest is charge on balance outstanding if it is paid on the month end however in case of credit cards interest is generally charged on balance outstanding.