Fixed Deposits

What is a FD?

FD or Fixed Deposits is an investment in which an individual invests a lump sum amount for a specific period with a company. The amount deposited in the FD earns interest at a fixed rate set at the time of the account opening. FD holders can choose to receive the interest earned either monthly, quarterly, half-yearly, or annually as per their preference.

FD full form is Fixed Deposit. It is a type of investment in which an individual invests a lump sum amount for a specific period of time with a bank. The amount deposited in the FD earns interest at a fixed rate which is set at the time of the account opening. FD holders can choose to receive the interest earned either monthly, quarterly, half-yearly or annually as per their preference.

How does an FD work?

When individuals open an FD Account, they need to deposit a specific amount. When individuals open an FD Account, they need to deposit a specific amount of money for a predetermined period. The amount deposited should not be withdrawn until the maturity of the deposit. The period of investment can range from 7 days to 10 years,
depending on the investor’s preference.

 

The interest rate offered on an FD depends on the period of investment and the amount deposited. The longer the investment period, the higher the interest rate and the higher the interest earned. The interest earned on an FD gets credited to the investor’s Account or gets reinvested in the FD at the end of the tenure.

Types of Fixed Deposits

Conventional FD

Tax-saving FD

Senior Citizen FD

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