Sr.
No.

Basis of
Difference

Fixed
Deposit Account

Recurring
Deposit Account

1.

Meaning

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

It is that account where depositors can
regularly save fixed amount for a specific period.

2.

Withdrawals

Customers
cannot with draw during the fixed period. If withdrawn earlier, rate of
interest will be less than applicable.

Customers
cannot withdraw during the fixed period. If withdrawn earlier, rate of
interest will be less than applicable.

3.

Facilities

The bank gives
a fixed deposit receipt to the customers

The bank gives
a pass book and pay in slip.

4.

Who
takes it

It is suitable
for any person with temporary idle cash.

It is suitable
for fixed income group.

5.

Constraintson operation and withdrawals

Payment is
received only on expiry of the fixed period. If withdrawn earlier, rate of
interest will be less than applicable

Payment is
received after the expiry of the fixed period.

6.

Rate
of interest

Interest rate
is higher. Longer the period, higher will be the rate of interest.

The rate of
interest is higher than saving account but less than fixed deposit account

7.

Nature
of Account

90% of the amount
of fixed deposit can be given as loan.

90% of the amount
in the account can be given as loan

8.

Facilities

It is for fixed
period of time except when the fixed deposits receipt renewed.

It is for a
fixed period of time.
