BANKING AFFAIRS

Detailed explanation-1: -The rate of interest is usually higher in fixed deposits. The rate of interest in savings accounts is usually lower. Fixed deposit withdrawals are offered following the closing of the tenure. Accountholders are free to withdraw money as long as they maintain the minimum balance requirement.

Detailed explanation-2: -Fixed Deposits (FD) are investment instruments offered by banks and non-banking financial companies, where one can deposit money for a higher rate of interest than savings accounts. These deposits, hence, offer the highest rate of interest, ranging from 4 to 7.

Detailed explanation-3: -Money deposited in monthly installments for a fixed period of time is called. A. Fixed deposit.

Detailed explanation-4: -Time deposit accounts provide banks with the cash flow they need to lend money to other customers. The bank makes a profit by lending the funds held in time deposit accounts for a higher interest rate than the rate it pays on the time deposits.

Detailed explanation-5: -Which of the following has a fixed time and pays higher interest than a SB Acccount? Notes: Fixed Deposit Account is a deposit of money that pays higher interest than a savings account but imposes conditions on the amount, frequency, and/or period of withdrawals. It is also called time deposit.