Distinguish between Fixed Account and Recurring Account
HSC Board of Maharashtra – Organization of Commerce and management – Studies notes, study material,distinguish between, difference between Fixed Deposit Account and Recurring Deposit Account, study material, study notes, study perpetration.
| Sr.No | Point of distinction | Fixed Deposit Account | Recurring Deposit Account |
| 1. | Meaning | It is that account where a fixed sum of money is deposited for a fixed period. | It is that account where depositors can regularly save fixed amount for a specific period. |
| 2. | Who takes it | It is suitable for any person with temporary idle cash. | It is suitable for fixed income group |
| 3. | Facilities | The bank gives a fixed deposit receipt to the customers | The bank gives a pass book and pay in slip. |
| 4. | Withdrawals | Customers cannot with draw during the fixed period. If withdrawn earlier, rate of interest will be less than applicable. | Customers cannot withdraw during the fixed period. If withdrawn earlier, rate of interest will be less than applicable. |
| 5. | Constraintson operation and withdrawals | Payment is received only on expiry of the fixed period. If withdrawn earlier, rate of interest will be less than applicable | Payment is received after the expiry of the fixed period. |
| 6. | Rate of interest | Interest rate is higher. Longer the period, higher will be the rate of interest. | The rate of interest is higher than saving account but less than fixed deposit account |
| 7. | Nature of Account | 90% of the amount of fixed deposit can be given as loan. | 90% of the amount in the account can be given as loan |
| 8. | Facilities | It is for fixed period of time except when the fixed deposits receipt renewed. |
It is for a fixed period of time |