Bank Fixed Deposits
A fixed deposit account allows an investor to deposit his money with banks for a fixed period of time thereby making him earn a higher rate of interest in return .the duration of such deposits generally ranges from 15 days to five years and above. At maturity, the iInvestor gets a lump sum (principal + interest) at the maturity of the deposit. Bank fixed Deposit are one of the most common form of savings available to the average investor. Thet score better than the normal savings account of the bank as they give a higher rate of interest to the investor. There are distinct facilities attached with a fixed deposit like the overdraft (loan) facility on the amount deposited, premature withdrawal before maturity period (which involves a loss of interest) etc. Bank deposits are fairly safer because banks are subject to control of the Reserve Bank of India.
The Recurring deposit in Bank is meant for someone who wants to invest a specific sum of money on a monthly basis for a fixed rate of return. At the end, the depositor will get the principal sum as well as the interest earned during that period. Recurring Deposits are an ideal way to invest small amounts of money every month for an agreed number of months. On completion of agreed period, the depositor is paid a specified amount which represents the total amount of installments plus interest.