Question

Distinguish between:

Fixed Deposit Account and Recurring Deposite Account.

Give one difference between Fixed deposit and Recurring deposit.

State one difference between fixed deposit account and recurring deposit account.

Differentiate between:

Fixed Deposit and Recurring Deposit.

Answer 1

Sr. No.	Basis of Difference	Fixed Deposit Account	Recurring Deposit Account
1.	Meaning	It is an account where a fixed sum of money is deposited for a fixed period.	It is an account where depositors can regularly save a fixed amount for a specific period.
2.	Withdrawals	Customers cannot withdraw during the fixed period. If withdrawn earlier, the rate of interest will be less than applicable.	Customers cannot withdraw during the fixed period. If withdrawn earlier, the rate of interest will be less than applicable.
3.	Facilities	The bank gives a fixed deposit receipt to the customers	The bank gives you a passbook and pay-in slip.
4.	Who takes it	It is suitable for any person with temporarily idle cash.	It is suitable for fixed-income groups.
5.	Constraints on operation and withdrawals	Payment is received only on the expiry of the fixed period. If withdrawn earlier, the rate of interest will be less than applicable.	Payment is received after the expiry of the fixed period.
6.	Rate of interest	The interest rate is higher. The longer the period, the higher the rate of interest.	The rate of interest is higher than a savings account but less than a fixed deposit account
7.	Nature of Account	90% of the amount of the fixed deposit can be given as a loan.	90% of the amount in the account can be given as a loan
8.	Facilities	It is for a fixed period of time except when the fixed deposit receipt is renewed.	It is for a fixed period of time.