O yes buddy, you have the knack b it still misunderstand the reasonings behind Fixed Term Deposit.
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A depositor has the right to call back his deposit. Fixed Term Deposits are raw cash in liquid form except that its set aside for further wealth. Fixed Term deposit still forms part of the Balance Sheet. Unlike Commercial Papers and Bankers Acceptances which are off Balance Sheet Items same as Treasury Bills and Certificates.
The interest on the CPs, BAs TBs and TCs are enjoyed upfront.Also the depositors are always aware of where their fund are been placed as it's evidenced in the Cert
Please find the components of Fixed Assets to know whether Fixed Deposits are one of such. Fixed Term Deposit are customers fund same as cash deposited in the Bank.
Bit
I studied Banking/Finance with a second degree in Corporate Finance.
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Yes you are right about the upfront interest in T bills, cps and BAs, what about the shares, that is not upfront. These are all investment that can be sold anytime which is the same as call back in fixed deposit. The call back is an option in the agreement and not the main goal of what you target. Also you are charged a fee for calling back because of cotract bridge. My question syoll remains, why is a fixed deposit account not run like a normal account if you are liquid? I believe at that moment you are investing your money in the banl, you are not liquid. The interest is actually a return of investment. For any investment you get a return and you can liquidate anytimeothers