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Question
How is fixed deposit different from saving deposit?
Distinguish Between
Solution
| Basis | Saving Deposit Account | Fixed Deposit Account |
| Meaning | It is a type of bank account which is opened with the purpose of collecting small savings from the people. | It is a type of bank account wherein a fixed amount of money is deposited for a fixed period of time. |
| Rate of interest | Rate of interest is nominal in saving deposit account. | Rate of interest is quite high in fixed deposit account. |
| Amount of money | It can be operated with a lesser sum of money. | A high sum of money is required to operate it. |
| Time period | It can be operated for any number of years. | It can be operated only up to a fixed period or specified period of time. |
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Functions of Commercial Banks - Primary Functions
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