Is Fixed Deposit a Non Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

A fixed deposit may be a current or non-current asset for accounting purposes.

Fixed deposits invested in banks for less than one year are current assets.

Fixed deposits invested in banks for longer than one year are non-current assets.

current asset is any asset that will provide an economic benefit within one year. A fixed deposit is a product offered by banks whereby interest earned on funds in the deposit is fixed and will not change with fluctuating interest rates.

Is Fixed Deposit a Non-Current Asset FAQs

Is a fixed deposit a non-current asset?

A fixed deposit may be a current or non-current asset for accounting purposes.

When would a fixed deposit be a current asset?

Fixed deposits invested in banks for less than one year are current assets.

When would a fixed deposit be a non-current asset?

Fixed deposits invested in banks for longer than one year are non-current assets.

What is a fixed deposit?

A fixed deposit is a product offered by banks whereby interest earned on funds in the deposit is fixed and will not change with fluctuating interest rates.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.