What is FD

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Fixed deposit is investment instruments offered by banks and non-banking financial companies, where you can deposit money for a higher rate of interest than savings accounts. You can deposit a lump sum of money in fixed deposit for a specific period, which varies for every financier.

Once the money is invested with a reliable financier, it starts earning an interest based on the duration of the deposit. Usually, the defining criteria for FD is that the money cannot be withdrawn before maturity, but you Benefits of Fixed Deposit

There are several advantages of fixed deposit investments, some of which have been given below

  • They are the safest investment instruments, and offer greater stability
  • Returns on fixed deposit are assured, and there is no risk of loss of principal
  • You can opt for periodic interest payouts, to help you manage your monthly expenses
  • There is no effect of market fluctuations on your fixed deposit, which ensures greater safety of your investment capital
  • You can benefit from higher interest rates offered by company fixed deposit
  • Some financiers also offer greater returns for senior citizens