PUT ACCOUNT Meaning and
Definition
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Put account is a financial term that refers to a specific type of bank account where a customer deposits funds for a fixed period of time at a predetermined interest rate. It is also known as a structured deposit or term deposit.
In a put account, the customer agrees to keep their funds in the account for a specified term, usually ranging from a few months to several years. During this period, the funds cannot be withdrawn without incurring penalties. The major characteristic of a put account is that it offers a higher interest rate compared to regular savings or checking accounts, as it rewards customers for committing their funds for a specified duration.
The term "put" in put account reflects the option given to the account holder to "put" their funds into this fixed-term account instead of keeping them in a more liquid account. This term differentiates it from other types of accounts that may have different withdrawal privileges.
Put accounts are popular among conservative investors or those seeking to earn a predictable return on their investment while minimizing risk. The interest rate on a put account is typically predetermined and remains fixed throughout the specified term, providing financial stability and a reliable income stream for the account holder. At the end of the term, the customer will have the option to renew the account or withdraw their funds with accumulated interest.
Overall, a put account offers a secure and structured investment option for customers looking for a fixed-term commitment and a higher return on their savings.
Common Misspellings for PUT ACCOUNT
- out account
- lut account
- -ut account
- 0ut account
- pyt account
- pht account
- pjt account
- pit account
- p8t account
- p7t account
- pur account
- puf account
- pug account
- puy account
- pu6 account
- pu5 account
- put zccount
- put sccount
- put wccount
- put qccount
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