Under such bank account, a depositor is required to deposit (multiples of Rs 5/ or Rs 10/ are accepted in his account every month. This deposit is usually available from 1 to 5 years. The rate of interest charged by banks on such accounts depends on the period but is better than savings bank account because this account is like a Fixed Deposit Account. Banks introduce such deposit account to inculcate the habit of saving among people by offering higher rate of interest.
Bank Fixed Deposits