STDR full form in banking is Special Terms Deposit Receipt. STDR is a fairly typical thing at banks, sort of as a weapon that they employ to ensure that things run smoothly. Imagine it as a savings account that is specialized where you can store your money for a specified period of time that could be for a couple of weeks or years. The best part is that the bank is able to pay you interest when you keep your cash with them and the rate is set at the beginning.
What Else Should You Know About STDR?
STDRs are characterized by a couple of distinctive features. One is that the term is fixed and the second is their interest rates. It’s not like a regular savings or checking account that you are able to simply pop in and take the money out when you’re ready to it. With STDRs your money is secured for the period you’ve agreed to. There’s also a great deal for you: a higher interest rate than you’d normally receive in an ordinary savings account. It’s pretty appealing in the event that you’re hoping to earn a steady income from your savings, isn’t it? Here’s the way banks can play their part. They receive the money people invest in STDRs and utilize it to issue loans.
