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

Meaning of Fixed Deposit Account - Bank ↓

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

The term 'fixed deposit' agency that the deposit is fixed together with is repayable entirely afterwards a specific menstruum is over.

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Under fixed deposit account, money is deposited for a fixed menstruum tell half dozen months, ane year, 5 years or fifty-fifty 10 years. The coin deposited inward this line concern human relationship tin plough over the sack non travel withdrawn earlier the death of period.

The charge per unit of measurement of involvement paid for fixed deposit vary (changes) according to amount, menstruum 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 work 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 sum tin plough over the sack travel deposited entirely once. For farther such deposits, dissever accounts require to travel opened.
3. The menstruum of fixed deposits arrive at 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, menstruum together with from banking concern to bank.
5. Withdrawals are non allowed. However, inward illustration of emergency, banks let to unopen 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 plough over the sack travel 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 menstruum of time..
2. Fixed deposit line concern human relationship enables the depositor to earn a high involvement rate.
3. The depositor tin plough over the sack larn loan facility from the bank.
4. On maturity the sum tin plough over the sack travel used to brand purchases of assets.
5. The banking concern tin plough over the sack larn the funds for a longer menstruum of time.
6. The banking concern tin plough over the sack lend such funds for brusque term loans to businessmen.
7. Fixed deposits indirectly boost economical evolution of the country.
8. The banking concern tin plough over the sack too invest such funds inward profitable areas.

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