Financial Products 

A financial Product is the means or the instrument which the financial institutions offers to the people in which a person can have money through various savings options, borrow money, invest in stock market by purchasing shares and purchase a insurance policy. The financial institutions offers a wide range of financial products but individuals do not have idea about the products that are available in the market.  

The financial products that the financial Institutions such as Commercial Banks and Microfinance provides are:

1. Savings Account

Savings are the most commonly known product in the market. A savings account is a deposit account where individuals can park their money. A Saving Account usually pays some amount of interest on the amount that individuals have in the account.

Unlike in the past where people saved their money under the bed or anywhere there was always a threat of losing their money or money getting damaged by weather but Savings account offers safety and reliability to the clients money saved with the institution.  

2. Current Account 

A current account is a bank account where an individual can store money and withdraw money at any point of time. Unlike Savings account Current account do not pay interest on the money that is deposited in the account. This type of account is generally used by business firms, companies, institutions and other large firms. 

3. Fixed Deposit Account (FD)

A Fixed Deposit account or FD account is an investment instrument or term deposit account offered by the financial institutions to the individuals. A fixed deposit account offers a predetermined interest rate on the amount to be saved for a certain period of time. At the end of the tenure or on the maturity period the bank pay an individual the lump sum amount saved along with the interest rate. FD is a good avenue to grow an individuals money over the period of time.  

4. Recurring Deposit Account (RD)

A Recurring Deposit Account or RD is a unique term deposit account which is also an instrument used to build saving habits among individuals. RD offers individuals a regular deposit factor with either an individual opting for fixed amount or a flexible amount. A predetermined interest rate depending on the tenure that an individual opts is paid by the bank to the individual at the end tenure with the amount that is saved during the tenure (the amount is paid in Lump Sum)