Question

Briefly explain Fixed Deposit Accounts.

Answer 1

1:The account which is opened for a particular fixed period (time) by depositing particular amount (money) is known as Fixed (Term) Deposit Account.
2:The term 'fixed deposit' means that the deposit is fixed and is repayable only after a specific period is over.
3: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 The money deposited in this account cannot be withdrawn before the expiry of period.
4:The rate of interest paid for fixed deposit vary (changes) according to amount, period and from bank to bank.