Ans:
A demand deposit could be accessed at any time and withdraw any amount of funds without prior notice given to the bank. Fixed Deposit is a saving account which cannot be withdrawn until the maturity date.
Term/Fixed Deposit: When money is invested for a specific period at a predetermined Fixed interest rate, it is known as a Term/fixed deposit. You cannot withdraw the money anytime before the agreed period is completed, or you’ll be charged a penalty.
Demand Deposit: Demand Deposit is the amount deposited by you when you wish and accessible to you at any time, meaning you can withdraw the funds at any time as the bank levies no charges on such deposits. Here, there is no fixed interest rate.