BANKING AFFAIRS

Detailed explanation-1: -The term ‘fixed deposit’ means that the deposit is fixed and is repayable only after a specific period is over Under fixed deposit account, money is deposited for a fixed period say six months, one year, five years or even ten years. The money deposited in this account cannot be withdrawn before the expiry of period.

Detailed explanation-2: -The money deposited in this account can not be withdrawn before the expiry of period is called fixed deposit account.

Detailed explanation-3: -Deposits of money, which cannot be withdrawn before the stipulated period of time, are called fixed deposits.

Detailed explanation-4: -Traditionally, there are four types of bank deposits in India, which are-Current Account, Recurring Deposits, Savings Accounts, and Fixed Deposit Accounts. Each type has its advantages.

Detailed explanation-5: -A time deposit is an interest-bearing bank account that has a date of maturity, such as a certificate of deposit (CD). The money in a time deposit must be held for the fixed term to receive the interest in full.