|
Sr.
No.
|
Basis of
Difference
|
Fixed
Deposit Account
|
Recurring
Deposit Account
|
|
1.
|
Meaning
|
It is that
account where a fixed sum of money is deposited for a fixed period.
|
It is that account where depositors can
regularly save fixed amount for a specific period.
|
|
2.
|
Withdrawals
|
Customers
cannot with draw during the fixed period. If withdrawn earlier, rate of
interest will be less than applicable.
|
Customers
cannot withdraw during the fixed period. If withdrawn earlier, rate of
interest will be less than applicable.
|
|
3.
|
Facilities
|
The bank gives
a fixed deposit receipt to the customers
|
The bank gives
a pass book and pay in slip.
|
|
4.
|
Who
takes it
|
It is suitable
for any person with temporary idle cash.
|
It is suitable
for fixed income group.
|
|
5.
|
Constraintson operation and withdrawals
|
Payment is
received only on expiry of the fixed period. If withdrawn earlier, rate of
interest will be less than applicable
|
Payment is
received after the expiry of the fixed period.
|
|
6.
|
Rate
of interest
|
Interest rate
is higher. Longer the period, higher will be the rate of interest.
|
The rate of
interest is higher than saving account but less than fixed deposit account
|
|
7.
|
Nature
of Account
|
90% of the amount
of fixed deposit can be given as loan.
|
90% of the amount
in the account can be given as loan
|
|
8.
|
Facilities
|
It is for fixed
period of time except when the fixed deposits receipt renewed.
|
It is for a
fixed period of time.
|
Fixed Deposit Account Recurring Deposit Account
