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FIXED INCOME PRODUCTS

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Deposit: Deposits serve as medium of saving and as a means of payment and are very important for financial health of any economy. A bank basically offers three types of deposits, i. e. Time deposit, Current deposit and Savings deposit. 

Fixed Deposit:  Fixed Deposit refers to a certificate of deposit that pays a fixed rate of interest till maturity. Funds placed in a Fixed Deposit usually cannot be withdrawn prior to maturity. The fixed deposit holder can be penalized by the Bank for pre – mature withdrawal. 

Fixed Deposits are sums accepted by most of the NBFCs and banks. The deposits offered by Bank are insured up to a maximum of Rs.1,00,000/- whereas deposits accepted by the NBFCs are not insured.

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