Fixed Deposit Account of a Bank | Meaning, Features & Benefits

Fixed Deposit Account of a Bank:  Meaning

Fixed Deposit Account refers to a savings bank account or a certificate of deposit in which a fixed rate of interest is paid and on the date of maturity a fixed amount is given by the bank to its customers. In this account, Funds placed cannot be withdrawn prior to the maturity or only be withdrawn by paying a penalty. Fixed Deposits are relatively safe investments.

Documents Required to Open a Fixed Deposit Account

  • Proof of Resident Indian
  • Identity Proof
  • Address Proof

Benefits & Features of a Fixed Deposit Account

  • High Returns on your fixed deposit amount
  • Flexibility in the investment option and Safety of your investment.
  • Range of fixed deposit period lies between 15 days to 10 years.
  • One time deposit is required in this Account and Withdrawal without maturity is only allowed on penalty.
  • It promotes saving habit in the individuals.
  • Loan facility can be provided by the bank to the fixed deposit account holder.
  • On maturity the amount can be used to buy assets such as land, car, consumer durable items etc.
  • Auto renewal is also provided.
  • Higher rate of interest for Senior Citizens.