Question

A fixed amount is deposited for a fixed period in ______ deposit account.

• A. current
• B. savings
• C. fixed
• D. recurring

Answer 1

The correct option is C fixed

A fixed deposit is a financial instrument provided by the banks or NBFCs which provides investors a high rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. The account which is opened for a particular fixed period (time) by depositing particular amount is known as Fixed Deposit Account. 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 The money deposited in this account cannot be withdrawn before the expiry of the period. The rate of interest paid for fixed deposit vary according to the amount, period and from bank to bank.