Fixed Deposit Concern Human Relationship Of Banking Concern - Meaning, Features, Advantages

Meaning of Fixed Deposit Account - Bank ↓

The concern human relationship which is opened for a item fixed menstruation (time) yesteryear depositing item total (money) is known equally Fixed (Term) Deposit Account.

The term 'fixed deposit' agency that the deposit is fixed in addition to is repayable exclusively later a specific menstruation is over.

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Under fixed deposit account, money is deposited for a fixed menstruation tell 6 months, i year, v years or fifty-fifty 10 years. The coin deposited inward this concern human relationship tin non endure withdrawn earlier the perish of period.

The charge per unit of measurement of involvement paid for fixed deposit vary (changes) according to amount, menstruation in addition to from banking concern to bank.

Features of Fixed Deposit Account ↓

The principal features of fixed deposit account are equally follows:-

1. The principal piece of occupation of fixed deposit concern human relationship is to enable the individuals to earn a higher charge per unit of measurement of involvement on their surplus funds (extra money).
2. The total tin endure deposited exclusively once. For farther such deposits, dissever accounts remove to endure opened.
3. The menstruation of fixed deposits make betwixt xv days to 10 years.
4. A high interest charge per unit of measurement is paid on fixed deposits. The charge per unit of measurement of involvement may vary equally per amount, menstruation in addition to from banking concern to bank.
5. Withdrawals are non allowed. However, inward illustration of emergency, banks let to unopen the fixed concern human relationship prior to maturity date. In such cases, the banking concern deducts 1% (deduction per centum many vary) from the involvement payable equally on that date.
6. The depositor is given a fixed deposit receipt, which depositor has to make at the fourth dimension of maturity. The deposit tin endure renewed for a farther period.

Advantages of Fixed Deposit Account ↓

The advantages of fixed deposit concern human relationship are equally follows:-

1. Fixed deposit encourages savings habit for a longer menstruation of time..
2. Fixed deposit concern human relationship enables the depositor to earn a high involvement rate.
3. The depositor tin larn loan facility from the bank.
4. On maturity the total tin endure used to brand purchases of assets.
5. The banking concern tin larn the funds for a longer menstruation of time.
6. The banking concern tin lend such funds for brusk term loans to businessmen.
7. Fixed deposits indirectly boost economical evolution of the country.
8. The banking concern tin too invest such funds inward profitable areas.

Basic Articles On Banking ↓

1. Recurring Deposit Account - Meaning in addition to Features
2. Current Bank Account - Features in addition to Advantages
3. Saving Account Bank - Meaning, Features in addition to Advantages
4. How to Open a Bank Account ? vii tardily steps To Open a Bank Account
5. What are the Main Advantages of Opening a Bank Account ?