Question

Identify the incorrect statement about fixed deposits.

Options

• They are also called as time deposits.

• The deposits are made in equal intervals.

• They earn high rate of interest.

• There is no cheque facility provided.

Answer 1

The deposits are made in equal intervals.

Explanation:

Fixed deposits (FDs) require a single, one-time lump-sum investment at the start of the period. A Recurring Deposit (RD) differs from a Fixed Deposit in that it allows you to deposit money at equal intervals.