A Fixed Deposit (FD), also known as a term deposit, is a popular financial instrument offered by banks and Non-Banking Financial Companies (NBFCs). It allows you to invest a specific amount for a fixed tenure at a predetermined interest rate. At maturity, you receive your principal amount along with the accrued interest.

Key Features of FDs:

  • A) Investment & Returns

    1. You invest a fixed amount for a chosen duration.
    2. The interest rate remains constant throughout the tenure.
    3. At maturity, you receive the invested amount plus interest.

  • B) Interest Rates & Tenure

    1. The interest rate varies depending on the bank/NBFC and the tenure.
    2. FD durations range from 7–14 days (short-term) to 10 years (long-term).