CURRENT DEPOSIT FIXED DEPOSIT

49. CURRENT DEPOSIT
FIXED DEPOSIT
1.      Meaning
It is operated by businessmen and others who have regular transactions.
2.      Purpose for Depositors
The main purpose of current account is facilitating regular transactions.

3.      Who operates
It is operated by businessmen and other organisations.
4.      Interest
There is no interest paid on current account.

5.      Period/Duration
The current account is of continuous in nature. It can be operated for any number of years.

6.      Withdrawals
There is no restriction on withdrawals.

It is that type of account where a fixed sum of money is deposited for a fixed period.

The main purpose is to get a lump sum amount on the maturity of the deposit.


It is operated by those individuals and organisations who have excess or idle money.

The rate of interest is high. It can be 6% to 10% depending upon the period of deposits.

The amount can be kept for a fixed period, minimum 7 days, and, maximum say 10 years.

Withdrawals are not permitted, but one can close the account before maturity date.