FTD full form in banking is a fixed term deposit. Fixed Term Deposit or FTD, which is sometimes referred to as the certificate of deposit (CD) is a type of savings instrument that banks provide. It is for people including businesses and individuals who wish to store their money in a safe location and watch it increase. In contrast to your typical savings or checking account FTD is a different kind of account. FTD is a unique collection of unique features. What exactly is an FTD function? When you sign up for an FTD it’s an agreement in conjunction with the financial institution. You are committing to deposit some amount to them for a period you and the bank decide on. It could be just some months, or even for a long time. But, here’s the problem however, during this time it isn’t possible to pull out the money at any time you’d like. If you do, you’ll be penalized except for important reasons, such as the death of the account holder.
What else do you need to Be Educated Concerning FTD?
If you begin with an FTD the interest rate is set from the start. That’s the reason it’s called Fixed term deposit. This means that you know precisely how much interest you’ll earn over the duration of your deposit at the bank. In contrast to other investments, where interest rates can fluctuate in and out of markets, FTDs are stable.
