Question

Define or explain the following concepts.
Fixed Deposits.

Answer 1

Fixed deposit account is a type of account where a fixed sum of money is deposit for a fixed period of time with no withdrawals permitted until the expiry of the fixed period and on the expiry of the fixed period, the total sum of money deposited in the bank account is paid to the depositor along with the accrued interest. The rate of interest is usually high in order to attract such deposits from the people due to which the rate is directly proportional to the sum of money deposited in the bank account.