Current Account and Fixed Deposit Account

Basis of Difference	Current Account	Fixed Deposit Account
Meaning	It is that account which is maintained by businessman and others who have regular transaction.	It is that account where a fixed sum of money is deposited for a fixed period.
Withdrawals	Customers can withdraw money by cheques.	Customers cannot with draw during the fixed period. If withdrawn earlier, rate of interest will be less than applicable.
Facilities	The bank gives a passbook, cheque book, statement of account and pay-in-slip book to the customers.	The bank gives a fixed deposit receipt to the customers
Who takes it	It is suitable for traders, businessmen, firms or institutions.	It is suitable for any person with temporary idle cash.
Constraints on operation and withdrawals	There are no restrictions on the operation of a current account as long as there is balance in the account.	Payment is received only on expiry of the fixed period. If withdrawn earlier, rate of interest will be less than applicable
Rate of interest	Normally, interest is not given.	Interest rate is higher. Longer the period, higher will be the rate of interest.
Nature of Account	It is of continuous nature.	90% of the amount of fixed deposit can be given as loan.
Facilities	Temporary overdraft facility is given	It is for fixed period of time except when the fixed deposits receipt renewed.