Fixed Deposit Account Recurring Deposit Account

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 If withdrawn earlier, rate of interest will be less than applicable.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 If withdrawn earlier, rate of interest will be less than applicable.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 If withdrawn earlier, rate of interest will be less than applicable	Payment is received after the expiry of the fixed period.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.