Fixed Deposit Account

Fixed Deposit Account Meaning:
In deposit terminology, the term Fixed Deposit Account refers to a type of savings account or certificate of deposit where deposits are made for a specified period of time and that pay out a fixed rate of interest.

Fixed Deposit Account Example:
For example, Fixed Deposit Accounts require that the funds be left in the account until the maturity date, incurring penalties for early withdrawal. These types of accounts are ideal as a store of wealth for individuals, businesses and financial institutions, earning a higher rate of interest on liquid assets than regular savings and checking accounts. The term “Fixed Deposit” is used in India and Southeast Asia and its equivalent in the United States is Time Deposit or CD, while in the United Kingdom the equivalent term is a Bond, and in Australia and Canada the investment product is known as a Term Deposit.