What Is BFD Full Form in Banking:

BFD, which stands for Bank-Fund-Deposit, is like a financial dance involving three key players: your bank, an investment fund, and your deposit account.

• Bank: Think of your bank as the safe keeper of your money. It’s where you have your account, deposit money, and withdraw when needed. This is your financial hub.
• Fund: A fund is like a special money club with a purpose. It could be for investing, saving, or meeting a specific financial goal. When you put money into a fund, it’s managed and invested on your behalf.
• Deposit: Depositing money is like putting cash into your bank account. It’s safe there, and you can take it out whenever you want.

What else you should know about BFD

The BFD story unfolds when money moves between these three players. For instance, you might decide to invest by putting money from your bank into an investment fund. The fund works its magic with that money, potentially growing it over time.

Later, when you want to access the gains or returns from your investment, you might withdraw those funds from the investment and deposit them back into your bank account. This completes the BFD cycle.

Understanding BFD is like having a roadmap for your financial journey. It helps you see how your money flows between your bank, where you store it and manage day-to-day expenses and investment funds where it has the potential to grow.