Question

Time Deposit account is also known as ______.

Options

• Recurring Deposit account

• Current account

• Saving Deposit account

• Fixed Deposit account

Answer 1

Fixed Deposit account

Explanation:

A Time Deposit account (also known as a Term Deposit) is a bank account in which a large sum of money is locked for a set length of time at a specific interest rate. Because the funds are committed for a set period of time (varying from a few days to several years) and cannot be withdrawn without incurring a premature penalty, it is commonly referred to as a Fixed Deposit (FD) account.