BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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term deposit
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savings bank deposit
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current deposit
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demand deposit
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Detailed explanation-1: -FDs are also called term deposits. Interest rates. Interest rates on FDs are fixed when you open the deposit and the rate depends on the term that you wish to hold it for.
Detailed explanation-2: -A term deposit is often used when the deposit is extended for a certain period, say 3 months, 6 months etc. Fixed deposits, on the other hand, are used when the deposit is for a period of 6 months or greater than that. The deposit amount offers a higher rate of return as compared to the banks’ savings accounts.
Detailed explanation-3: -In Term Deposits, the sum of money is kept for a fixed maturity and the depositor is not allowed to withdraw this sum till the end of the maturity period. That is why they are called as Term Deposits because they are kept up to a particular term.
Detailed explanation-4: -Examples of term deposits include certificates of deposit (CDs) and time deposits.