Table of Contents
- 1 Is fixed deposit and recurring deposits are repayable on demand?
- 2 Which deposits are repayable after the?
- 3 What is the difference between fixed deposit and recurring deposit?
- 4 What is term deposit and demand deposit?
- 5 What is demand deposit means?
- 6 What is fixed deposit scheme?
- 7 What is recurring deposit and its benefits?
- 8 What is meant by recurring deposit?
- 9 What is fixedfixed deposit (FD)?
- 10 What is Recurring Deposit (Rd)?
- 11 Should you invest in a recurring deposit or a fixed deposit?
Is fixed deposit and recurring deposits are repayable on demand?
Fixed deposits are repayable on a prefixed maturity date. The amount repayable is: The principal amount and Agreed interest rate for the period. No operations are allowed to the customer against the deposit, as is permitted in demand deposits.
Which deposits are repayable after the?
The term ‘fixed deposit’ means that the deposit is fixed and is repayable only after a specific period is over Under fixed deposit account, money is deposited for a fixed period say six months, one year, five years or even ten years. The money deposited in this account cannot be withdrawn before the expiry of period.
Which deposits are repayable after the expiry of the fixed deposit?
Q. | which deposits are repayable after the expiry of the fixed period? |
---|---|
B. | time deposit |
C. | savings deposit |
D. | recurring deposit |
Answer» b. time deposit |
What is the difference between fixed deposit and recurring deposit?
In Fixed Deposit, an amount is deposited for a fixed period of time. A fixed deposit provides interest on the deposited amount. Whereas, in Recurring Deposits,the customer deposits fixed amounts in small intervals for a long period. When the term of RD expires, the whole amount is repaid along with the interest amount.
What is term deposit and demand deposit?
Term deposits, also known as time deposits, are investment deposits made for a predetermined period, ranging from a few months to several years. Demand deposit accounts offer greater liquidity and ease of access as compared to term deposits.
What do Demand deposits include?
Demand deposits include savings and current account deposits because demand deposits are not for any specific period of time. They can be withdrawn as and when required. These deposits are chequable deposits.
What is demand deposit means?
What Is a Demand Deposit? A demand deposit account (DDA) is a bank account from which deposited funds can be withdrawn at any time, without advance notice. Checking accounts and savings accounts are common types of DDAs.
What is fixed deposit scheme?
A fixed deposit (FD) is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. Some banks may offer additional services to FD holders such as loans against FD certificates at competitive interest rates.
What is RD account?
A Recurring Deposit, commonly known as RD, is a unique term-deposit that is offered by Indian Banks. An RD account holder can choose to invest a fixed amount each month while earning decent interest on the amount. RDs are an ideal saving-cum-investment instrument.
What is recurring deposit and its benefits?
Designed to save any amount over a period of time, RDs are an advanced version of the fixed deposit. This is because a recurring deposit understands that you may not be able to save all the money in one go. So, it allows you to save bit by bit, and get interest for the outstanding balance.
What is meant by recurring deposit?
A recurring deposit means making regular deposits. It is a service provided by many banks where people can make regular deposits and earn decent returns on their investments.
Is fixed deposit a demand deposit?
Primarily, banks offer two kinds of deposit accounts. These are demand deposits like current/saving account and term deposits like fixed or recurring deposits. When you open a deposit account in a bank, you become an account holder or a depositor. Saving accounts are used to meet daily on-demand requirements of cash.
What is fixedfixed deposit (FD)?
Fixed Deposit or FD, as the name says, is an investment option where the period of investment and is fixed and so is the interest earned on it. Deposit is made only once, i.e. at the commencement of the FD period.
What is Recurring Deposit (Rd)?
Recurring deposit is a type of risk-free investment where a fixed amount is deposited in a bank or an NBFC every month. The rate of interest is fixed and does not change throughout the length of the RD tenure. RD tenure ranges from 6 months to 10 months (generally).
What is the tenure of a recurring deposit?
Individuals who opt to invest in recurring deposits will have to choose a tenure, which usually ranges from 1 year to 10 years depending on your bank or financial institution. But, they can deposit a fixed amount every month and can earn interest on a monthly basis.
Should you invest in a recurring deposit or a fixed deposit?
Individuals who do not have a sum of money to invest in a fixed deposit but can afford small portion of investment amount from income every month can opt for a recurring deposit instead of a fixed deposit. But, if you have a lump sum amount to invest at one go, fixed deposit is the right investment option for you.