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Distinguish between Fixed Deposits and Saving Deposits.

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Fixed Deposits: 

1. Fixed Deposits are time bound deposits, where money is deposited for a specific period of time. 

2. The main objective is to earn high interest and to get lumpsum amount on maturity.

3. It cannot be withdrawn before maturity but one can close the account before maturity with loss of interest. 

4. The rate of interest is high. It can be 6% to 10% depending upon the period of deposit.

Saving Deposits: 

1. Saving deposits are a kind of demand deposits, which is held by households or individuals for the purpose of savings. 

2. Safety is the major objective of saving accounts. 

3. Withdrawals are allowed subject to certain restrictions. 

4. The saving account earns nominal rate of interest. At present it is about 4 to 4.5% per annum.

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