3 Replies to “Can i have a detailed description of bank deposits and their kinds(saving, fixed, recurring, etc)?”

  1. Saving deposits are for our day to day savings and are intended to
    boost saving habits of general public. You may get ur money back
    whenever u need it. Interest rate is normally around 6%.
    In Fixed deposits, you deposit a fixed amount of money for a fixed
    time period. After that you get it back after that much period.
    Interest rate is higher. Somewhr around 10%.

    And in Recurring deposits you deposit a fixed amount after a fixed
    time period, like monthly. You keep on depositing your money and
    gets it back in lump-sum. Here compound interest is used to calculate
    the final amount. I dont know the rate of interest, sorry.

  2. There are various types of Financial Products. The type of product varies from country to country. In order to give a detailed explanation, I need to know from which country you are.

    Nevertheless, I will try to advise some of the products. The basic financial products are current account, savings account and fixed deposit for Personal customers. By the way, Personal customers are induviduals who open an account and Business customers accounts opened by organisations, corporates, partnership firms etc.

    In India, we have Savings account, Fixed Deposit and Current Accounts (mainly for business customers). Savings account is a basic account where you deposit money from your day to day earnings which will attract a small credit interest. With this account you will be provided with a cheque book and a debit card by most of the banks.

    A fixed deposit is an account where you deposit a fixed amount for a fixed period of time. Say you have Rs.10000 with you and you dont want to spend the amount instead earn extra money utilising this 10000 over a period of time. You can open a fixed deposit for 6 months, 1 year, 2 years etc. The interest rate will depend on the amount and the term you are keeping the money in. The interest rate again depends on the bank where you open an account.

    To get a greater picture, I suggest you visit any of your local banks and they would be more than happy to assist you.

    This is a vast subject and it is really not possible to answer in one or two paragraph. However, I hope this would at least give you a small picture how it works.

    All the best!

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