Fixed Deposit (FD)
A bank deposit locked for a set term at a fixed interest rate.
What is Fixed Deposit (FD)?
A Fixed Deposit (FD) is a savings product where money is deposited with a bank or NBFC for a fixed period at a predetermined interest rate. It offers guaranteed, predictable returns that are usually higher than a regular savings account, in exchange for locking the funds until maturity. Interest may be compounded and paid periodically or at maturity, and early withdrawal typically incurs a penalty.