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49. CURRENT DEPOSIT
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FIXED DEPOSIT
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1.
Meaning
It
is operated by businessmen and others who have regular transactions.
2.
Purpose for
Depositors
The
main purpose of current account is facilitating regular transactions.
3.
Who operates
It is operated by businessmen
and other organisations.
4.
Interest
There is no interest paid on
current account.
5.
Period/Duration
The
current account is of continuous in nature. It can be operated for any number
of years.
6.
Withdrawals
There
is no restriction on withdrawals.
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It is that type of account where a fixed
sum of money is deposited for a fixed period.
The main purpose is to get a lump sum
amount on the maturity of the deposit.
It is operated by those individuals and
organisations who have excess or idle money.
The rate of interest is high. It can be 6%
to 10% depending upon the period of deposits.
The amount can be kept for a fixed period,
minimum 7 days, and, maximum say 10 years.
Withdrawals are not permitted, but one can
close the account before maturity date.
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CURRENT DEPOSIT FIXED DEPOSIT
