what is difference between term deposit and fixed deposit?

in term deposit we deposit money for specific period , so do we do fixed deposit. I searched over internet but didn't find satisfied answer. Please tell me what exactly is difference between them.

Please tell me which one is better to invest.(for tax saving and non tax saving both).

asked Jan 15 '12 at 22:57 by suren 41141725

As such there is no difference in these deposits. Some banks call it term deposit, some fixed deposits. Fixed deposit is more common name popular in India, whereas Term deposit is more popular in western countries.

In both of these, money is deposited for a particular period of time and released after term is over. If there is premature withdrawal, bank may put a penalty.

For tax saving purposes, only a five year fixed/term deposit is available.

answered Jan 22 '12 at 15:43 by Pankaj Batra 5.2k320

Thank you for your clearing my doubts
(Jan 22 '12 at 22:36) suren

There is no difference in these deposits. The fixed deposit is one such investment that will offer you the investment option for the fixed term. The fixed deposit is therefore known as term deposit too. The fixed deposit option is offered by various nationalised as well as private sector banks.

answered Jan 07 '14 at 10:47 by James Franklin 1


answered May 29 '14 at 14:57 by Narendra Pratap 1


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Asked: Jan 15 '12 at 22:57

Seen: 22,971 times

Last updated: May 29 '14 at 14:57