Fixed Deposit Work Organization Human Relationship Of Depository Fiscal Establishment - Meaning, Features, Advantages

Meaning of Fixed Deposit Account - Bank ↓

The job organisation human relationship which is opened for a detail fixed catamenia (time) past times depositing detail total (money) is known equally Fixed (Term) Deposit Account.

The term 'fixed deposit' agency that the deposit is fixed together with is repayable solely afterward a specific catamenia is over.

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Under fixed deposit account, money is deposited for a fixed catamenia state vi months, ane year, 5 years or fifty-fifty 10 years. The coin deposited inwards this job organisation human relationship tin non survive withdrawn earlier the cash inwards one's chips of period.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 equally follows:-

1. The primary role of fixed deposit job organisation 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 survive deposited solely once. For farther such deposits, split upwards accounts remove to survive opened.
3. The catamenia of fixed deposits hit betwixt xv 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 equally per amount, catamenia together with from banking concern to bank.
5. Withdrawals are non allowed. However, inwards illustration of emergency, banks let to closed the fixed job organisation human relationship prior to maturity date. In such cases, the banking concern deducts 1% (deduction percent many vary) from the involvement payable equally 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 survive renewed for a farther period.

Advantages of Fixed Deposit Account ↓

The advantages of fixed deposit job organisation human relationship are equally follows:-

1. Fixed deposit encourages savings habit for a longer catamenia of time..
2. Fixed deposit job organisation 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 survive 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 besides invest such funds inwards profitable areas.

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