what is the difference between savins deposit and fixed deposit?

Answer 1

Savings deposit is more liquid. You can withdraw your savings at any time. Fixed deposit only allows you to withdraw funds at the end of the fixed term; if you want to withdraw funds earlier, you get penalized.

In a majority of cases, early withdrawal of fixed deposit funds results in penalties that are higher than the interest the bank would have paid you.

Banks know that majority of people cannot keep their hands off their funds for 6 months; they love these fied deposits because they not only use your deposit to exponentially quadruple their profits, they usually end up penalizing customers for warly withdrawal because we just can't keep our hand off our monies for more than 6 months on average.

If you are as disciplined as a Buddhist monk, then go for fixed deposit. If you are like the rest of us, go for savings account, it's more liquid.

Answer 2

A saving bank account is an account where you can withdraw money at any time and get interest(( lowest) for the balance at the end of the month, you get tax benefit for the interest earned. Nowadays you can get ATM card and cheque book also to operate the account. Most of the banks insist to keep a minimum balance. You can transfer this account from one bank to another and open and close the account at any time, where as a fixed deposit earns you a certain percentage of interest but your amount is locked for a certain period. Most of the banks allow you to take 90% of the loan as an advance and if you donot repay the advance the bank will take 1 or 2 percent more (if bank gives you 5 % it will take 6 or 7 percent interest), from you.If you close the fixed depost prematurely you will not earn any interest or you will earn less. It depends on the bank. This is what I understood by dealing with many banks, including post office , coperative, private and public sector banks. If there is any mistake let some one point itout . I welcome it.

Answer 3

Savings deposit has the following features. 1> You can deposit any amount of money any time you like. 2> You can withdraw any amount, subject to a maintainence of a minimum balance in the account 3> The rate of interest given on savings account is less than that of a fixed deposit.
The fixed deposit has the following features 1> A particular amount of money is deposited to the bank and you may not withdraw the money till the term of the deposit is over 2> You cannot add to the money that you have deposited, e.g. if you have a fixed deposit of $10000 for this month, you cannot deposit any additional money to that account/deposit. 3> Rate of interest is higher than savings