Hi students, Welcome to **Amans Maths Blogs (AMB)**. In this article, you will get **Banking ICSE Class 10 Maths Revision Notes & Solutions Chapter 2 PDF**.

Contents

## What is Fixed Deposits (FD)?

In fixed deposit, a depositor deposits a fixed amount for a fixed period of time. At the expiry of this period, the depositor gets the amount deposited by him together with an interest. For fixed deposits, the minimum duration is 7 days and for recurring deposit, the minimum duration is six months. The maximum duration for both schemes FD and RD is 10 years

## What is Recurring Deposits (RD)?

In this scheme, a depositor deposits a fixed amount every month for a specified months. At the expiry of this period, the depositor gets the amount deposited by him together with an interest, completed quarterly at a fixed rate.

## What is Fixed Deposits (FD)?

In fixed deposit, a depositor deposits a fixed amount for a fixed period of time. At the expiry of this period, the depositor gets the amount deposited by him together with an interest. For fixed deposits, the minimum duration is 7 days and for recurring deposit, the minimum duration is six months. The maximum duration for both schemes FD and RD is 10 years.

## What is difference FD and RD?

In RD, an investment is made at a fixed period, whereas in FD, the investment is one-time. RD works well for people who wish to invest minimal amount monthly or at any fixed period. The investment in FD is a higher lumpsum. When returns in FD or RD are compared, then FD seems to give higher returns.

## What is Recurring Deposits Formula (RD Formula)?

If **Rs. P** is the money deposited per month, **n**, the number of months for which this money is deposited and **r% p.a.** the simple interest, then the equivalent principle for 12 months is **Rs. Pn(n + 1)/2**, time = 1 month, r rate of interest = **r/12%** per month and hence **the simple interest is**

Thus, the **maturity value** is MV = Pn + SI, or

**Read More** : **S Chand ICSE Class 10 Math Chapter 2 Banking Exercise 2 Solutions**

**Read More** : **S Chand ICSE Class 10 Math Chapter 2 Banking Revision Exercise Solutions**