fixed-deposit

Vocabulary Word

Definition

'Fixed Deposit' is a financial tool offered by banks and financial institutions. You agree to deposit a certain amount of money for a fixed period, and the bank pays you interest. When that period ends, you get your money back along with the interest.

Examples in Different Contexts

In banking, a 'fixed deposit' is a financial product where money is deposited for a fixed period at a guaranteed interest rate. A bank manager might explain, 'Investing in a fixed deposit is a safe option for those looking to earn a steady interest income without risk.'

Practice Scenarios

Accounting

Scenario:

We have some surplus budget this quarter. What's the safest way to maximize returns on this extra amount?

Response:

How about putting the surplus in a fixed deposit? It's sure to give us steady returns.

Personal Finance

Scenario:

Saving money is important to me, but I don't want any risk. Where should I put my savings?

Response:

You may consider making a fixed deposit for a portion of your savings. It's a low-risk option with consistent returns.