BANKING AFFAIRS

Detailed explanation-1: -Means a deposit received by the Bank for a fixed period withdrawable only after the expiry of the said fixed period and include deposits such as Recurring Deposits/ Short Term Deposits / Fixed Deposits / Money multiplier deposit etc.

Detailed explanation-2: -Deposits which are repayable after six months or more are called Fixed Deposits; interest thereon is calculated on the basis of 365 days in a year or actual months.

Detailed explanation-3: -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. Typically, the longer the term, the higher the interest rate that the depositor receives.

Detailed explanation-4: -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-5: -A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposits (CD). The deposited funds must remain in the account for the fixed term to receive the stated interest rate.