'Term-deposit' vs. 'Fixed deposit'.

Question

Some banks call it 'Term-deposit' others call it 'Fixed deposit'.

Is there any difference between the two?

Answer 1

In fixed deposit, you invest a lump-sum amount for a specific period of time. And in term deposit, you invest some fixed amount every month for a specific period of term. This is also called RD. Sometimes, the interest rates on both the schemes are equal and both names are used for both scheme. But the basic difference is the mode of investment.

Hope it will help you.
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