Question

Distinguish between the following:
Savings account and Fixed Deposit account.

Answer 1

Fixed Deposit Account is a kind of investment, where the money is deposited for a particular period of time (tenor) and the bank/financial institution pays interest on the money deposited. But unlike a savings account, the money cannot be withdrawn before the fixed tenure, or rather it should not.

A savings account is a deposit account for regular savings. The interest rate is always guaranteed up to the nearest Date of saving.The bank will open a saving account in the agreed currency and for the agreed period according to the contract. If a term deposit is made to a deposit account.