Frequently Asked Questions
1
What is the difference between RD and FD?

Both FD and RD are fixed income products available from finance. On the invested amount finance pay you a fixed interest which can be at a specific frequency till the term or on maturity. At the end of the term, the maturity amount which is your invested capital, along with remaining or accumulated interest is paid.

2
What is fixed deposit in finance?
A fixed deposit (FD) is a financial instrument provided by finance which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account.
3
What are the benefits of fixed deposit?

A fixed deposit account is an investment account and a type of savings account in which money is deposited for a stated period of time and a fixed interest rate is paid at the end of that period. It is a safer investment option when compared to other investment types such as shares or the money market

4
How does the fixed deposit work?
You can keep the deposit of money for a period of 1 month or upto 7 years. The longer will be the tenure of FD, the more will be the rate of interest. ... In case of cumulative Fixed Deposits, the rate of interest remains same and higher than any other type as you will not be able to withdraw the money or interest of it.
5
What is term deposit account in a finance?
Terms deposits are the most familiar type of investments paying interest. They are a savings product from a finance, credit union or building society. Your money is invested for a fixed term and you get a fixed rate of interest over that term.
6
What is an RD account?
Recurring Deposit is a special kind of Term Deposit offered by finance in bangladesh which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits. ... Minimum Period of RD is 6 months and maximum is 10 years.
7
What is the difference between a deposit account and a savings account?

The main difference between savings accounts and time deposits is that savings accounts are more flexible because they enable you to withdraw and deposit money without losing any of the interest earned on your savings while they were in the finance, whereas time deposits enable you to earn higher interest rates.

8
What is the difference between fixed and term deposit?

Demand deposits and term deposits differ in terms of accessibility or liquidity and in the amount of interest that can be earned on the deposited funds. Demand deposits and term deposits refer to two different types of deposit accounts available at a finance or similar financial institution, such as a credit union.

9
What is the meaning of current account?
The current account is an important indicator about an economy's health. It is defined as the sum of the balance of trade (goods and services exports less imports), net income from abroad and net current transfers.
10
What do you mean by reinvestment of interest?

The interest on a fixed deposit is usually paid out either monthly or quarterly depending on the option that the investor chooses. ... Other than this, those depositing money in a fixed deposit also have the reinvestment of interest option available. 2. The yield or return on a fixed deposit is different from interest.

11
What is flexible deposit account?
A Flexi Fixed Deposit is a special kind of deposit scheme offered by finance in bangladesh and many countries in the world, which is a combination of demand deposit and a fixed deposit. The depositor is able to enjoy both the liquidity of savings and current accounts as well as the high returns of fixed deposits.
12
What is a term deposit and how does it work?

A term deposit is a deposit held at a financial institution, bank, building society or credit union for a fixed amount of time, known as a term. When the money is deposited, the customer understands that the money is there for the pre-determined period which usually ranges from 1 month to 5 years.

13
What is the meaning of term deposit?

A term deposit is a cash investment held at a financial institution. Your money is invested for an agreed rate of interest over a fixed amount of time, or term.

14
Is a debit card a checking or savings account?

If you have both checking and savings accounts at the same bank, you may be able to access your savings with your debit card at an ATM. However, when you purchase an item using your debit card, the funds are usually withdrawn from your checking account in this case – not your savings.

15
What is checkings and savings?
A checking account is a type of bank deposit account that is designed for everyday money transactions. The money in a savings account, however, is not intended for daily use, but is instead meant to stay in the account — be saved in the account — so that it might earn interest over time.
16
What is a demand deposit in economics?
A demand deposit is money that you deposit into a bank account from which you can withdraw on demand, at any time without any advance notice to the bank. Common examples of accounts that are often demand deposit accounts include many checking and savings accounts.
17
What is the meaning of time deposit?
A time deposit is an interest-bearing deposit held by a bank or financial institution for a fixed term whereby the depositor can only withdraw the funds after giving notice.
18
How the fixed deposit interest is calculated?
The interest rate is fixed for the whole maturity period and, it's usually considered as an extremely safe investment. The interest rates differ bank to bank and also on the maturity period (usually longer period means higher interest rate). The interest is compounded quarterly (every three months) in most banks.