Fixed Deposit

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Bank Fixed Deposits are also known as Term Deposits. In a Fixed Deposit Account, a certain sum of money is deposited in the bank for a specified time period with a fixed rate of interest. The rate of interest for Bank Fixed Deposits depends on the maturity period. It is higher in case of longer maturity period. There is great flexibility in maturity period and it ranges from 15days to 5 years. The rate of interest is fixed as per the circulars from the Registrar of Co-Operative Socities. 1/2% additional interest is given to the senior citizens. Minimum deposit amount is Rs 1000/- and there is no upper limit. Loan facility is available against bank fixed deposits. Premature withdrawal is permissible but it involves loss of interest. The depositor can withdraw the interest monthly, quarterly or credited to their respective SB Accounts.