Fixed Deposit means an amount is deposited at Bank for a fixed period. The bank offers a fixed rate of interest for that period. The banks offers a wide range of period; from 15 days to 5 years. The interest rate varies according to the duration.
Savings Bank Account
Saving Bank Account has been introduced in banks with a primary intention of developing the saving habits of ordinary people. It allows one to deposit his cash in the bank even in small amounts and withdraw his money whenever he wants. Safety is one of the attractive benefit. An SB Account offers a moderate interest rate also. The rate of interest is decided by Reserve Bank of India and it is periodically reviewed.
Current Account is mainly for businessmen, firms, companies, public enterprises etc. which do numerous daily banking transactions. In a CD A/c the account holder can deposit or withdraw money as many times, limiting to the availability of amount in his account. It is zero-interest based deposit, which means the amount in the CD a/c will not get any interest. It is meant only for the convenience of money transactions.
Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.
In banking terminology, the term Notice Deposit refers to a fixed term certificate of deposit or a savings account held with a financial institution that permits withdrawals without penalty only after advance notification is given. Also known as a Notice Account.
Pigmy Deposit Scheme is a monetary deposit scheme which allows money to be deposited into an account on daily basis. The amount may be as small as Rupees five. It can be called a recurring deposit scheme, as the money is deposited almost daily.