Also known as Term Deposit Account, this type of bank account requires you to keep the amount deposited in the account for a term that can vary between one month and five years. Generally a minimum deposit is required to open such an account. The rate of interest paid varies depending on the term of the deposit. Remember that the bank quotes the interest per year. There are very few instances when a bank may allow you to withdraw your money from a fixed deposit account before it reaches the term. However, if you are allowed to do it, your bank may apply a penalty. Always verify all the terms and conditions that apply before opening the account.