What are Time Deposits & Demand Deposits? | Current, Savings & Fixed Deposit Account | BankBazaar

Today, we'll explore two essential types of deposit accounts—Time Deposit and Demand Deposit. Understanding these can help you make better financial decisions.

First, let's talk about Time Deposits, also known as Term Deposits. These are like investment deposits made for a specific period, ranging from a few months to several years.

The longer you keep your money in a Time Deposit account, the higher the interest rate you'll earn. It's an excellent option for those looking to grow their savings steadily.

However, there's a catch. Unlike a regular savings account, you can't withdraw funds from a Time Deposit until the specified period ends.

At the end of the term, you have the choice to withdraw your money along with earned interest or renew the deposit for a new term.

Now, let's shift o ur focus to Demand Deposits.

Demand Deposit accounts provide greater liquidity and easy access to your funds. You can withdraw any amount, anytime, without facing any penalties.

They are suitable for keeping money you might need for emergencies or day-to-day expenses.

However, Demand Deposit accounts generally offer lower interest rates compared to Time Deposits. Also, some banks may charge fees for handling the account or exceeding a certain number of withdrawals per month.

So, in a nutshell, Time Deposits are like long-term investment accounts with higher interest rates but less accessible until the specified period ends. On the other hand, Demand Deposits are more flexible, allowing easy access to funds but with lower interest rates.

Choose wisely based on your financial goals and needs. If you aim to save for the long haul, Time Deposits might be your pick. But for easily accessible money, Demand Deposits are the way to go.

Time Stamps:

0:00 Intro to Time Deposit & Demand Deposit
0:14 What are Time Deposits? Like Fixed deposit
0:47 What are Demand Deposits? Like Savings Account
01:16 Time Deposit Vs Demand Deposits

#fixeddeposits #savingaccount #timedeposit #personalfinance #currentaccount #fixeddepositscheme

Read more -

[rohithgaming]

Your hand movement and ur voice makes me think your a npc