Category: Fixed Deposit

A 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 a 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 Usually, the defining criteria for FD are that the money cannot be withdrawn before maturity, but you may withdraw them after paying a penalty. FD enable investors to earn higher interest on their surplus funds. You can deposit money in an FD account only once, but to deposit more money, you need to create another account