Long-term FDs and short-term FDs vary in terms of the tenor chosen and this has a great impact on your investment.
If you’re looking to reap excellent returns from your deposit amount, consider investing in a long-term FD. When you invest for a long tenor, the principal amount compounds over time, enabling you to earn more interest. Also, you tend to get a better interest rate with long-term FDs.
On the other hand, short-term fixed deposits enable you to ladder your investments, allowing you to benefit from better liquidity and any increments made to the FD interest rates.