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

Meaning of Fixed Deposit Account - Bank ↓

The line concern human relationship which is opened for a detail fixed catamenia (time) past times depositing detail total (money) is known every bit Fixed (Term) Deposit Account.

The term 'fixed deposit' way that the deposit is fixed together with is repayable alone later a specific catamenia is over.

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Under fixed deposit account, money is deposited for a fixed catamenia state half dozen months, 1 year, v years or fifty-fifty 10 years. The coin deposited inwards this line concern human relationship tin non hold out withdrawn earlier the overstep away of period.

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

Features of Fixed Deposit Account ↓

The primary features of fixed deposit account are every bit follows:-

1. The primary role of fixed deposit line 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 hold out deposited alone once. For farther such deposits, split accounts involve to hold out opened.
3. The catamenia of fixed deposits attain betwixt fifteen 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 every bit per amount, catamenia together with from banking concern to bank.
5. Withdrawals are non allowed. However, inwards example of emergency, banks permit to closed the fixed line concern human relationship prior to maturity date. In such cases, the banking concern deducts 1% (deduction per centum many vary) from the involvement payable every bit 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 hold out renewed for a farther period.

Advantages of Fixed Deposit Account ↓

The advantages of fixed deposit line concern human relationship are every bit follows:-

1. Fixed deposit encourages savings habit for a longer catamenia of time..
2. Fixed deposit line 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 hold out used to brand purchases of assets.
5. The banking concern tin larn the funds for a longer catamenia 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 inwards profitable areas.

Basic Articles On Banking ↓

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