Write a short note on the Fixed Deposit Account.

1.	Write a short note on the Fixed Deposit Account.
Answer» The term fixed deposit means deposits repayable after the expiry of a certain period which ordinarily varies from one year to five years. The rate of interest is higher in a fixed deposit account in comparison to other deposits, the rate of interest also depends upon the period of fixed deposits. The longer the period during which the money is to remain with the banker, the higher is the rate of interest. The bankers occasionally allow their customers to withdraw their fixed deposits before their due dates but in such cases, the customers have to forego their accrued interest. The fixed deposit account is generally opened by those persons who do not have any other source of profitable investment. The persons who have excess money and which is not required by them in the near future open this type of account. The depositor can also borrow money against the security of fixed deposit.

Answer»

The term fixed deposit means deposits repayable after the expiry of a certain period which ordinarily varies from one year to five years. The rate of interest is higher in a fixed deposit account in comparison to other deposits, the rate of interest also depends upon the period of fixed deposits. The longer the period during which the money is to remain with the banker, the higher is the rate of interest. The bankers occasionally allow their customers to withdraw their fixed deposits before their due dates but in such cases, the customers have to forego their accrued interest.

The fixed deposit account is generally opened by those persons who do not have any other source of profitable investment. The persons who have excess money and which is not required by them in the near future open this type of account. The depositor can also borrow money against the security of fixed deposit.

Write a short note on the Fixed Deposit Account.

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