There are mainly four types of account
- Current deposit
- Fixed deposit
- Savings deposit
- Recurring deposit
Fixed deposit account
- The account which is opened for a particular fixed period (time) by depositing particular amount (money) is known as Fixed (Term) Deposit Account. The term ‘fixed deposit’ means that the deposit is fixed and is repayable only after a specific period is over.
- A fixed deposit is a financial instrument provided by the banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account.
- Popularly known as ‘time deposit’ or ‘time liabilities’ or ‘term deposit’
- Minimum period is 7 days & maximum is 10 years.
If the maturity of the deposit falls on a holiday then the payment is to be done on the succeeding working day, since, a fixed deposit cannot be claimed before the maturity date, this is as per the terms of the original contract.
- The interest rate that fixed deposits provide is higher than that provided in savings account
- On maturity of the deposit, there is auto renewal.
- Fixed deposit receipt (FDR) is the receipt that is issued by the banker acknowledging that the money is fixed deposited.
Current deposit account
Savings deposit account