The fixed deposit account is an account where depositors can place short term deposits for a specified period of time usually one to twelve month. The account targets members with large sums of money that they have put aside for investment and they are fairly certain of the period that they can commit the funds. The account operates as detailed below:
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Minimum deposit Kshs.50,000.
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Interest is computed daily and credited at the maturity of the contract period.
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Accrued interest is forfeited if a depositor withdraws the funds before the maturity date.
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The customer will be issued with a Certificate of Deposit upon depositing the money.
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The Certificate of Deposit details the amount deposited, date deposited, interest rate applicable, contract period, and the maturity date.
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Upon maturity, the depositor can rollover the principle together with the interest or collect interest and rollover the principle or collect both the principle and interest.
