what is a term or fixed deposite account
Answers
A term deposit is a fixed-term investment that includes the deposit of money into an account at a financial institution. Term deposit investments usually carry short-term maturities ranging from one month to a few years and will have varying levels of required minimum deposits.
Answer:
What Is a Term Deposit?
A term deposit is a fixed-term investment that includes the deposit of money into an account at a financial institution. Term deposit investments usually carry short-term maturities ranging from one month to a few years and will have varying levels of required minimum deposits.
What is a Fixed Deposit?As an investment instrument offered by banks and NBFCs (non-banking financial companies), Fixed Deposit is a great way to grow your savings with utmost safety. It is one of the most preferred avenues that enables you to deposit a lump sum amount with your financier, and choose a tenure as per your convenience. On completion of the pre-decided tenure, your deposit starts earning an interest, throughout the chosen duration, as per the interest rate at which you locked in your deposit.
Once your investment amount has been locked in at a specific interest rate, it remains unaffected by further changes in interest rates or market fluctuations. Thus, you can get guaranteed returns on your deposit, and you can choose to get your interest on a periodic basis, or at maturity. Usually, the defining criteria for FD is that the money cannot be withdrawn before maturity, but you may withdraw them after paying a penalty.
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