0 votes
in Revision by

What are features of a fixed deposit account?

1 Answer

0 votes
by (58.9k points)

Features of a Fixed Deposit Account.

  • Involves large amounts of money to operate.
  • Are contractual in that maturity is pre-determined e.g. 12 months, 3 years etc.
  • No mid-term withdrawals or additional deposits are allowed.
  • Banks can lend (trade with) the entire amount of fixed deposits with certainty within the contract period.
  • Fixed deposits earn fairly good interest, compared with savings deposits.
  • An account holder who breaches the contract loses his interest and is penalized.
  • Fixed deposits can be used as security for other forms of credit such as overdrafts.
Welcome to Kenyayote Q&A, where you can ask questions and receive answers from Kenyayote staff and other members of the community.

Before you ask, search the website to make sure your question has not been answered.
If you are ready to ask, provide a title about your question and a detailed description of your problem.