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1.5Review of Literature

The purpose of review is to develop some expertise in one’s, to see what new contribution has
made and to receive some idea for developing research design. Thus previous study cannot be
ignored as the provide the foundation of the pre study. This topic related the literature that is
available in concerned subject as to my knowledge, research work and relevant study on this topic,
review of journal and article review of thesis work performed previously.

1.5.1 Conceptual Review

Poudel, (2014) The term Fixed Deposit refers to a savings account or certificate of deposit that
pays a fixed rate of interest until a given maturity date. Funds placed in a Fixed Deposit usually
cannot be withdrawn prior to maturity or the bank can perhaps only be withdrawn with advanced
notice and/or by having a penalty assessed. Fixed Deposit will often be used by individuals,
businesses and financial institutions around the world as a means of storing their liquid funds for
a fixed period of time for future use. In the retail market, Fixed Deposits are relatively safe
investments when provided by insured financial institutions such as banks, savings and loan
corporations and credit unions that are duly regulated within the country in which the bank operate.
Also, while the term Fixed Deposit is in common usage in Nepal and some other countries, Fixed
Deposits are also known as term deposits in countries like Australia, Canada and New Zealand, as
time deposits in the United States and as bonds in Great Britain.

Francis, (1992) Fixed Deposit are investment instruments offered by banks and non-banking
financial companies, where we can deposit money for a higher rate of interest than savings
accounts. We can deposit a lump sum of money in fixed deposit for a specific period, which varies
for every financier. Once the money is invested with a reliable financier, it starts earning an interest
based on the duration of the deposit. Usually, the defining criteria for FD is that the money cannot
be withdrawn before maturity, but we may withdraw them after paying a penalty. Fixed Deposit
enable investors to earn higher interest on their surplus funds. We can deposit money in a fixed
deposit account only once, but to deposit more money, we need to create another accounts. Though
liquidity in fixed deposit is lesser, we can look for higher rates of interests, which are higher in
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case of company fixed deposit. Fixed deposit can be easily renewed . Tax is deducted at source,
from interest on Fixed Deposit as applicable, as per the Income Tax Act, 1961.