Fixed deposits, often known as FDs, are becoming a more popular kind of investment in India because of their low risk and predictable returns. The amount of money is kept locked up and receives interest for the duration of the fixed deposit.
FDs do, however, have their benefits and drawbacks, just like any other type of investment option.
What is an FD Account?
An FD account, or Fixed Deposit account, is a type of investment account offered by banks and financial institutions. It allows individuals to deposit a lump sum of money for a predetermined period of time, known as the term, and earn a fixed rate of interest on that deposit. At the end of the term, the account holder can choose to withdraw the initial deposit plus interest earned or roll over the deposit for another term. FD accounts are considered a low-risk investment option and are popular among individuals who want to earn a guaranteed return on their savings.