A type of an account opened by a customer where the money is deposited for a longer period of time and to get a regular income, it is known as 'Fixed Deposit Account'. Fixed Deposit account is safe and fetches relatively a higher return. The minimum amount of deposit under this type of account is Rs. 500. There is no ceiling for the maximum amount of deposit that can be made into this account.

The receipt issued by a banker on the acceptance of deposits for a fixed time period is known as “Fixed Deposit Receipt”. It contains the particulars of the amount of deposit, the rate of interest and other terms on which the deposit is accepted.

1. It is not a negotiable instrument and hence cannot be transferred and the transferee does not get a better title than that of the transferor.
2. It cannot be transferred by mere blank endorsement.
3. It can be assigned but the assignment should be duly given to the bank.
4. Cheques cannot be drawn against fixed deposit receipts.
5. If the deposit receipt is duly signed by the customer but presented by a third party, banker should not pay the amount until he obtains "Letter of Authority" from his customer.
6. If the fixed deposit receipt is lost, money can be claimed by court order.