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 In this account, Funds placed cannot be withdrawn prior to the maturity or only be withdrawn by paying a penalty.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.