A Fixed Deposit (FD) is a financial investment option offered by banks and financial institutions where you deposit a lump sum amount for a fixed period at a predetermined interest rate. Here's a simple breakdown:
Fixed Tenure: You choose a time period (e.g., 7 days to 10 years).
Fixed Interest Rate: The rate remains constant during the tenure, unaffected by market changes.
Higher Returns than Savings Account: Usually offers better interest than a regular savings account.
Low Risk: It’s a very safe and stable investment.
Premature Withdrawal: Possible, but may incur a penalty or lower interest.
Guaranteed returns
Capital safety
Flexible tenure options
Easy to open with most banks/NBFCs