Please answer 12
Dear student
(a) Fixed deposits account
(b) It refers to the amount of money which people deposit in the bank for a fixed period of time . Banks pay a higher amount of interest on this.
Also people can withdraw this money but for that they will have to break the fixed deposit and the bank may even fine the person.
The basic thing is that in fixed deposits it is like u r telling the bank that it can use that amount of money from your account to give loans for a certain period of time and u wont be withdrawing it till that period of the time ends. That is why banks pay a higher interest on fixed deposits than demand deposits.
For eg. you deposit Rs. 5000 in your bank and the bank gives you an interest of 3.5%. Now if you deposit the same amount as fixed deposit for a period of 2 or 3 yrs , the bank will give you an interest of 6%, which is higher than the interest paid on demand deposits.
Regards
(a) Fixed deposits account
(b) It refers to the amount of money which people deposit in the bank for a fixed period of time . Banks pay a higher amount of interest on this.
Also people can withdraw this money but for that they will have to break the fixed deposit and the bank may even fine the person.
The basic thing is that in fixed deposits it is like u r telling the bank that it can use that amount of money from your account to give loans for a certain period of time and u wont be withdrawing it till that period of the time ends. That is why banks pay a higher interest on fixed deposits than demand deposits.
For eg. you deposit Rs. 5000 in your bank and the bank gives you an interest of 3.5%. Now if you deposit the same amount as fixed deposit for a period of 2 or 3 yrs , the bank will give you an interest of 6%, which is higher than the interest paid on demand deposits.
Regards