A Fixed Deposit is the cash
deposit at a bank or other financial institutions that cannot be taken out for
any kind of expenses for a particular tenure or time period. Normally, the fixed deposit rates, that is, the
interest rates on fixed deposits, are akin to your savings account, but it
earns a higher interest rate than your savings account. The maturity amount and
the total interest depend upon the period of the fixed deposit and the fixed deposit rates that the bank
offers on the deposit. If at all any emergency financial crises exist, you can
cancel your fixed deposit at any time, But, a portion of the amount will be
levied a penalty for cancelling your Fixed Deposits before the maturity period.
Summary: You can as well avail a loan from your fixed deposit with
a nominal rate of interest slightly more than your fixed deposit rates.
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