FIXED DEPOSIT Meaning and
Definition
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A fixed deposit refers to a type of financial investment wherein an individual or an entity deposits a fixed sum of money with a bank or a financial institution for a predetermined period, typically earning a fixed interest rate over time. It is considered as one of the most popular and secure investment options due to its low risk nature.
In a fixed deposit, the deposit amount, interest rate, and tenure are agreed upon at the time of making the deposit, forming a contractual agreement between the depositor and the financial institution. The primary objective of a fixed deposit is to preserve capital while generating reliable returns.
The interest earned on a fixed deposit is generally higher compared to a regular savings account, making it an attractive investment avenue for individuals looking to grow their savings. The interest rate depends on various factors such as the deposit tenure, the amount deposited, and prevailing market conditions.
Fixed deposits usually have a predetermined lock-in period during which the deposited amount cannot be withdrawn. However, premature withdrawal may be allowed, but it may incur penalties or a reduced interest rate.
Fixed deposits are popular among conservative investors who prioritize stability and security over high returns. They are widely utilized by individuals, businesses, and organizations to park surplus funds and earn interest, allowing for financial growth and stability in the long run.
Common Misspellings for FIXED DEPOSIT
- dixed deposit
- cixed deposit
- vixed deposit
- gixed deposit
- tixed deposit
- rixed deposit
- fuxed deposit
- fjxed deposit
- fkxed deposit
- foxed deposit
- f9xed deposit
- f8xed deposit
- fized deposit
- ficed deposit
- fided deposit
- fised deposit
- fixwd deposit
- fixsd deposit
- fixdd deposit
- fixrd deposit
Etymology of FIXED DEPOSIT
The term "fixed deposit" has its origins in the financial industry and specifically in the field of banking.
The word "fixed" implies that the deposit has a fixed or predetermined duration or term. It refers to a type of account where a customer deposits a sum of money with a bank for a specified period, typically ranging from a few months to a few years. During this time, the deposited amount cannot be withdrawn by the customer without incurring penalties or losing the interest earned.
The term "deposit" refers to the action of placing money into an account with a financial institution for safekeeping or to earn interest. It is derived from the Latin word "deponere" which translates to "put down" or "lay aside".
Overall, the term "fixed deposit" combines the idea of placing money into an account and the fixed or predetermined nature of the duration or term of the deposit.
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