(i) Fixed Deposit Account: Deposits which are made for a specified period and whose amount cannot be withdrawn before the expiry. These deposits are repayable, but only after the expiry of a fixed period. Such as one year, 5 years etc. Fixed deposits are also known as Long-Term Deposits. For such long-term investment higher rate of interest is offered. Larger the time period of the deposit higher will be the rate of interest. 

Importance: 

1. These are very flexible in nature. 

2. Fixed deposits offers guaranteed returns. The interest rate is also higher. 

(ii) Recurring Deposit Account: Started for those persons who cannot make large deposits. It is started to encourage such people. Such type of accounts can be open with a small amount for a specified period. When the time period ends the depositor gets his money with an interest. A passbook is also issued to the person who deposits his money time to time. He can check how much he deposits in the bank by checking his passbook.