Fixed Deposit account are those account open in banks in which an account holder can deposit a predefined amount of money for a definite period of time and get heavy interest on it till the time of maturity of the account. The term ‘fixed deposit’ means that the amount you given to the bank will not be return till the time of accounts maturity. In the fixed deposit account the money will be deposited for like 6months to 10 years or more as per the banks scheme and the money will be withdrawn after the expiry of the decided period.

The rate of interest offered by the banks for their investors in fixed deposit account is comparatively higher than the interest offered for saving accounts of bank. It is one of the safest modes of investment for any investor as he/she surely gets the interest on the investment.

Features and Advantages of a Fixed Deposit Account 

The main feature of a fixed deposit account is that you can able to get a higher rate of interest on your extra money which you don’t need for a long period of time.

Once you have opened a fixed account with a bank you cannot add more money into that account until its maturity. For other surplus funds you need to open another separate account for it.

The period of fixed deposit account ranges between 15 days to 10 years and you can only withdrawal money in case of emergency by closing your account before the maturity date.

The bank will give deposit receipt to the investor which one has to show at the time of maturity date of the account to collect his amount.

Fixed deposit helps you to save your money for a longer period of time so that you will use that money for future expenses like children higher education, marriage etc.

The investor will get loan facility on the behalf of his fixed deposit account from the bank.

The bank also enjoys the advantages of fixed deposit. The funds received by the investor can be further use in lending short term loan to the business man or provide short term personal loan to the borrower by the bank.


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