ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Time deposits offer investors a fixed interest rate until maturity. Time deposits are risk-free investments backed by the FDIC or NCUA. Time deposits have various maturity dates and minimum deposit amounts. Time deposits pay a higher interest rate than regular savings accounts.

Detailed explanation-2: -CDs generally pay a fixed rate of interest and can offer a higher interest rate than other types of deposit accounts, depending on the market. These accounts typically provide security for longer-term savings and no monthly fees, but at the cost of access and liquidity of the funds.

Detailed explanation-3: -The tenor of a CD at issuance shall not be less than seven days and shall not exceed one year.

Detailed explanation-4: -Fixed Deposits and Certificates of Deposits are both bank-based investment options that help you save money and earn interest. CDs have shorter tenures, whereas FDs come with varying investment tenures. The minimum investment amount for CDs is INR 1 lakh, whereas you can invest in FDs with just INR 1000.