A current account is a personal bank account that helps manage your finance, in which you

can withdraw, deposit and transfer money in the account at any time.. It can be opened in
commercial banks. A current account is associated with huge transactions on a regular basis. It
also includes deposits, withdrawals and contra transactions. Because of the fluidity that these
accounts are able to offer, they are unable to earn any interests.

A savings account is an “interest bearing” deposit account held at banks or other financial
institutions, where only a limited amount of withdrawals can take place, it does not have cheque
facilities or a linked debit card facility. It is an account where People store their money and earn
interest on it and given their safety and reliability they are a perfect option for making cash
available for short-term needs, saving accounts pay a modest interest rate.

Certificate of deposit : A certificate of deposit (CD) is a product offered by banks and credit
unions that provides an interest rate premium in exchange for the customer agreeing to leave a
lump-sum deposit untouched for a predetermined period of time. ( it's a special type of saving
account, in which an individual agrees to deposit a certain amount that shouldn’t be withdrawn
for a certain time period. Based on that the bank pays interest on the amount deposited .) CDs
offer a higher interest rate compared to saving accounts and usually has a minimum deposit
amount

Personal loan: a type of loan that can help you make big purchases or pay debts.
- unsecured
- Higher interest rates
- Can be used for anything
- Get loaned Smaller amount of money
- Relatively short term ( usually between 1-7 years)
- Usually no down payment

Mortgage: is a debt instrument (loan), which is typically issued for the purpose of purchasing a
house. Such loans are secured by the collateral of the real estate property if the individual
defaults.

- uses your house as collateral ( can loose your home if you default)
- Lower interest rates
- Exclusively used for purchasing real estate
- Get loaned larger sum of money
- Long term loan (usually between 10-30 years)

Credit cards: a payment card issued to users that enables them to purchase goods and
services, based on the users promise to the bank to pay back the amounts plus any additional
charges.