What Is The Full Form Of FTD In Banking?
FTD full form in banking is fixed term deposit. A Fixed Term Deposit, or FTD, also known in some places as a Certificate of Deposit (CD), is a kind of savings tool that banks offer. It’s for anyone like individuals or businesses, who want to put their money somewhere safe and see it grow. Unlike your usual savings or checking account, an FTD has its own set of special features. So, how does an FTD work? When you go for an FTD, you’re making a deal with the bank. You agree to leave a certain amount of money with them for a time you both decide on. This could be for just a few months or it could be for several years. Now, here’s the thing though, during this period, you can’t just pull out your money whenever you want. If you do, you’ll likely face some penalties, unless there are some serious reasons like the account holder’s passing away.
What Else Should You Know About FTD?
When you start an FTD, the interest rate is fixed right from the get-go. That’s why it’s called a ‘Fixed Term Deposit.’ This means you know exactly how much interest you’ll get over the time your money is with the bank. Unlike other investments where interest might go up and down with the market, FTDs stay steady.