in which account you deposit money which is not required immediately
Answers
Answer:
fixed deposit
Explanation:
In fixed deposit,money is kept for some time fixed
Answer:
FD (Fixed Deposit).
Explanation:
Fixed Deposit:
It is also known as an FD, is an investment instrument offered by banks, as well as non-banking financial companies (NBFC) to their customers to facilitate them in saving money. With an FD account, we can invest a sizeable amount of money at a predetermined rate of interest for a fixed period. At the end of the tenure, we receive the lump sum, along with an interest, which is a good money-saving plan. Different Banks offers different rates of interest for a fixed deposit account.
We can choose a fixed deposit for a period ranging from minimum 7-14 days to maximum 10 years. It is also called a term deposit. When we open a fixed deposit account at a specific interest rate, it is guaranteed, for the rate of interest remains the same, irrespective of any changes, which happen due to market fluctuations.
The interest we earn is either paid at maturity or on periodic basis depending on our choice. We are not allowed to withdraw the money before the maturity. If we want to, we have to pay a penalty.
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