ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -A certificate of deposit (CD) is an insured interest earning savings tool that allows restricted access to the funds. The deposits in CDs have to be held for a certain length of time, which can range from seven days to eight years.

Detailed explanation-3: -A certificate of deposit (CD) is a type of savings account that requires the account holder to leave their money in the account for a specified amount of time, known as the CD “term, ” in exchange for earning a fixed rate of interest.

Detailed explanation-4: -Fixed rate savings accounts are sometimes also called fixed term accounts or fixed rate bonds. As the names suggest, they’re accounts that give you a fixed rate of interest over a fixed period of time (the term).

Detailed explanation-5: -A checking account is a type of deposit account that can be opened at a bank or credit union, allowing you to deposit and withdraw money quickly.