What are time deposits in banks?
Time deposits refer to those deposits, in which the amount is deposited with the bank for a fixed period of time.
Additional Information:-
Fixed deposits refer to those deposits, in which the amount is deposited with the bank for a fixed period of time.
- Such deposits do not enjoy chequeable facility.
- These deposits carry a high rate of interest.
Features of time deposits:
- They are non-chequeable deposits.
- They carry interest which varies directly with the period of time
- Depositor generally makes only two transactions: (i) Deposit of Money in the beginning: (ii) Withdrawal of money on maturity.
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