Find out more about Fixed Deposit and Recurring Deposit. Share information on these with your class.
Fixed Deposit (FD): A lump sum amount is deposited for a fixed period at a fixed interest rate. The money cannot be withdrawn before maturity without penalty. Interest rates are higher than savings accounts. Suitable for people who have a large amount to invest at once.
Recurring Deposit (RD): A fixed amount is deposited every month for a fixed period. It helps develop a regular savings habit. Interest is earned on the accumulated amount. Suitable for people who want to save small amounts regularly over time.
Both FD and RD are safe investment options offered by banks with guaranteed returns.
Explanation
This research activity introduces students to different types of bank deposits. Fixed Deposit involves depositing a lump sum for a fixed period at higher interest rates, while Recurring Deposit involves monthly deposits of fixed amounts. Students should research these concepts and share their findings with classmates.