Diffrence between CP and Fixed Depoist

[sourabh_muthreja]

Dear  expert,

What is the  core difference between Commercial paper and Fixed deposit  ?

Thanks

[Gustavo_Vazquez · Accepted solution]

Hi Sourabh,

53A is for short term (usually 7 days). You enter "amount in", "amount out" that's all, You don't need Interest Rate. All is payed at the end of the transaction.

51A is short to medium term ( 7 days, 1-12 months ). You enter the Capital, Interest Rate and there it is. You could increase or decrease Capital, get payed or capitalize Interest.

There are 2 different financial instruments. You could make a FTD look like a Commercial Paper, but not the other way arround.

Kind Regards

[former_member198450]

Hi Sourabh,

few points already covered by Gustavo rest you will get explained in google. Please refer below explanation. Please understand SAP is just ERP tool which helps to record financial transaction.

Commercial Paper Definition | Investopedia

Term Deposit Definition | Investopedia

Regards,

Jain