Fixed Deposit Account: Deposits which are made for a specified period and whose amount cannot be withdrawn before the expiry. These deposits are repayble, but only after the expiry of a fixed period such as one year, 5 year etc. Fixed deposits are also known as long-term deposits. For such long-term investment, higher rate of interest is offered. Large the time period of the deposits higher will be the rate of interest.
Importance:
1. These are very flexible in nature.
2. Fixed deposits offers guaranteed returns. The interest rate is also higher.
