Fixed Deposit

In a Fixed Deposit, the sum of money is blocked for the period of the deposit. Banks allow depositors the flexibility to invest their funds from periods as low as 7 days to 10 Years. Since the interest rate and the period of this deposit are fixed, banks refer to this type of deposit as a Fixed Deposit. A fixed deposit offers guaranteed returns. The rate of interest offered to you when you open an FD remains constant throughout your tenure. Even if the interest rates fall in the broader market, your FD won't be affected. You, therefore, don't have to worry about the ups and downs of the market. Hassle-free investment. Fixed deposits are a high-interest -yielding Term deposit and offered by banks in India. The most popular form of Term deposits are Fixed Deposits, while other forms of term Deposits are Recurring Deposit and Flexi Fixed Deposits (the latter is actually a combination of Demand deposit and Fixed deposit).