A savings account is a type of bank account designed to help individuals save money while earning interest on the balance. It is a safe and convenient way to store funds that are not needed for daily expenses. Savings accounts typically offer lower interest rates compared to other investment options, but they provide easy access to funds, usually through withdrawals, transfers, or ATM access.
A fixed deposit (FD) is a financial instrument where money is deposited for a fixed tenure at a predetermined interest rate. Unlike savings accounts, the money in an FD cannot be withdrawn before maturity without a penalty. FDs offer higher interest rates than regular savings accounts, making them a popular choice for conservative investors seeking stable and secure returns. The interest earned can be paid out periodically or at maturity, depending on the type of FD chosen. They are considered low-risk investments and are often used for saving toward specific future goals.
This is a specialized banking system that helps individuals, corporations, and governments raise capital and provide financial advisory services. Key functions: Helping companies raise money by issuing stocks or bonds. Advising companies on buying, selling, or merging with other firms (M&A). Offering strategic advice on investments, restructuring, and financial planning. Buying and selling securities for clients or the bank’s own portfolio.
Refers to the range of debit cards, credit cards, and prepaid cards. These services allow customers to make purchases, withdraw cash, and conduct various transactions electronically.
Wealth management is a comprehensive financial service that combines investment advice, financial planning, tax strategies, estate planning, and other financial services to help individuals grow, protect, and manage their wealth. Key components: Creating and managing a portfolio based on risk tolerance and financial objectives. Planning for retirement, education, or major life events. Minimizing tax liabilities through smart strategies. Managing and passing on wealth to future generations efficiently. Insurance and other tools to protect assets.
A sum of money borrowed which must be repaid over time, usually with interest. Loans help individuals and businesses finance purchases, investments, or manage cash flow