BANKING AFFAIRS

Detailed explanation-1: -The term “fixed deposit” means that the deposit is fixed and repayable only after a specific period of time. 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 The money deposited in this account cannot be withdrawn before the expiry of the period.

Detailed explanation-2: -Recurring deposit account is where a fixed sum of amount is deposited at regular intervals.

Detailed explanation-3: -In a Fixed Deposit, the bank blocks the sum of money or the deposit amount for the deposit period. Banks allow depositors the flexibility to create fixed deposits for tenures as low as seven days up to 10 years.

Detailed explanation-4: -A common example of a fixed-term investment is a term deposit in which the investor deposits his or her funds with a financial institution for a specified period of time and cannot withdraw the funds until the end of the time period, or at least not without facing an early withdrawal penalty.