Multiple choice

Which of the following is not a feature of a term deposit?

  1. Minimum period is 7 days and maximum is 10 years.

  2. Tax deduction at source is to be done where the amount of deposit is more than Rs. 10000 w.e.f. 1.6.2007.

  3. The term deposit cannot be transferred.

  4. The name of other person can be added or deleted to the deposit on request of the depositor<font size="2">(</font>s).
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Term deposits are a type of investment that pays back interest. These are basically a type of savings account where your money is invested for a fixed period of time and you get a fixed rate of interest over that time period. In this, the minimum period is 7 days and the maximum period is 10 years. All the options but 2 talk about the features of the term deposit. Thus, option 2 is the correct answer.

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