Q.Which type of bank deposit account is best suited to a business needing to make frequent deposits and withdrawals, and usually earns little or no interest?

Each deposit account type is designed for a different pattern of use — the deciding factor here is frequency of transactions, not the amount of interest earned.

A Current Account is designed specifically for businesses/firms that need to deposit and withdraw money frequently, often several times a day, and places no restriction on the number of withdrawals — in exchange, it usually pays nil or a very low rate of interest. A Savings Account restricts withdrawal frequency (option a); Fixed and Recurring Deposits (options b, d) are savings-oriented, term-based accounts not meant for frequent transacting at all.

Choosing Savings Account, overlooking that a savings account restricts the number of withdrawals allowed — unsuitable for a business needing frequent transactions.