What is a Fixed Deposit ?

1. What is a Fixed Deposit?
2. What is premature withdrawal charges ?
3. Who can apply for fixed deposit ? 
4. What are the benefits offered by a Fixed Deposit?
5. What is the minimum amount for a fixed deposit? 


1. What is a Fixed Deposit? 
In a Fixed Deposit account you deposit you money for a set period of time, the deposit earns you interest which is usually higher than what the savings account offers you. 


2. What is premature withdrawal charges ?
Unlike the savings account where you can withdraw the money either partial or in full at any time the fixed deposit can be withdrawn only when term period expires. Pre,ature withdrawal from fixed deposit before the term period would attract premature withdrawal charges


3. Who can apply for fixed deposit ? 
Organizations and Individuals who want to park their funds somewhere, for some future purpose simultaneously earning better interest than that offered by savings accounts.


4. What are the benefits offered by a Fixed Deposit? 
# You can take loan of a certain percentage (e.g. say 80%) against a fixed deposit.
# Better interest rates than that offered by savings accounts.
# Flexibility in choosing the term period for the deposit.
# Premature withdrawal, in case funds are required urgently.


5. What is the minimum amount for a fixed deposit? 
The mimimum fixed deposit offered by various financial institutions vary,
hence the information may be obtained directly from such institutions.

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