Fixed deposit glossary

A savings account opened with a bank that does not require the maintenance of any minimum balance. The account holder can operate the account with any amount of funds and this is usually available along with a big investment or deposit.

A special category of fixed deposits where the investor gets the benefit of a tax break when they invest a sum of money in the deposit. The maximum benefit is available up to an investment of Rs 1 lakh and there is a lock-in period of 5 years in the deposit.

A method of payment where the tax applicable at a specific rate is cut from the amount of interest or other payment and then the net amount is paid to the person who has to receive the amount. The tax is then deposited with the government along with the permanent account number of the receiver. [...]

The interest that is earned on the fixed deposit is taxable under the Income Tax Act. This means that every rupee of interest earned will be counted as income and tax levied on it.

An account opened with a bank that allows the account holder to deposit and withdraw funds for their requirements. The account pays an interest of 3.5% for the account holder.

A process whereby the deposit holder continues with the deposit for an additional time period after the completion of the initial time period of investment. The additional period can be similar or different from the original time period. Instead of withdrawing the deposit amount this is continued.

This is the action of giving the original amount that is invested back to the investor when the specified time period is over. The process of repayment will complete the entire fixed deposit cycle.

A proof or acknowledgement of the deposit that is received by a bank from an investor. This gives various details like the amount, time period, mode of payment of interest, maturity date and so on.

These are the banks that are operating in the Indian economy where the majority shareholding is with the government. Several banks that were earlier in private hands were nationalised by the government to bring them under the public control.

These are the banks that are operating in the Indian economy where the majority shareholding is held by private entities. Apart from a few old banks, most of these are usually new-age banks that have come into existence when the sector was opened up for private participation.