Fixed Deposits

Fixed deposits (FDs) are a type of financial investment offered by banks and other financial institutions, where an individual can deposit a lump sum of money for a fixed period of time, typically ranging from a few months to a few years, and earn a fixed rate of interest on the deposit. One of the advantages of FDs is that they are considered to be a safe investment option, usually backed by government guarantees up to a certain amount. Although FDs provide the option of premature withdrawal, it may come with a penalty fee, and the interest rate earned may be lower than the original rate agreed upon.

Benefits

Fixed Returns

Fixed deposits provide a constant interest rate, ensuring guaranteed returns throughout the investment term.

Safety

Fixed deposits are safe investments, backed by government guarantees and unaffected by market fluctuations.

Limited liquidity

Fixed deposits allow premature withdrawals with a penalty, offering some liquidity for investors.

Flexible tenures

Fixed deposits offer flexible tenures, ranging from a few months to several years, to suit investors' financial goals.