Define explain the following concepts.
1. Fixed deposits
Answer:
Fixed deposits: Fixed account deposits (also known as time deposits) refer to those deposits that are held for a fixed (specific) period of time (called maturity period). These deposits cannot be withdrawn before the maturity period. Hence, these are not payable on demand. Also, these deposits are non-cheque able deposits. However, due to the longer lock-in period involved in the fixed account deposits, these deposits involve a higher rate of interest than that earned on the savings account deposits.
