What is a Fixed Deposit?
A Fixed Deposit (FD) is an investment instrument where you deposit a lump sum of money for a fixed period at a pre-agreed interest rate. Unlike market-linked products, FDs provide stable and guaranteed returns, making them a low-risk investment.
It is one of the most preferred savings options for individuals who want capital protection and predictable earnings.
With tenures ranging from a few months to several years, FDs offer flexibility to meet both short-term and long-term financial goals.
Interest can be paid out at regular intervals or reinvested for compounding benefits, depending on your preference.
At the end of the maturity period, you receive the original deposit along with the earned interest, making it a dependable way to grow your savings.
Key Features of Fixed Deposits
- Assured and fixed returns regardless of market fluctuations
- Flexible tenure options to suit various financial goals
- Higher interest rates for senior citizens
- Loan or overdraft facility available against FD amount
- Auto-renewal and nomination facility
Why Choose an FD?
FDs are excellent for creating an emergency fund, saving for a short-term goal, or simply earning better returns than a regular savings account. They bring peace of mind, knowing your capital is protected and growing over time.