Fixed Deposit

Fixed Deposit (FD)

Fixed Deposit (FD) accounts are renowned for stability, attracting conservative investors seeking secure avenues for savings. Offered by banks and financial institutions, FDs involve depositing a lump sum for a predetermined period at a fixed interest rate. This fixed rate ensures predictability in returns, shielding investors from market volatility. FDs offer flexibility in tenure and payout options, catering to diverse financial needs. While FDs guarantee capital preservation and nominal risk, they may not yield the highest returns during periods of low-interest rates, potentially impacting purchasing power. Nonetheless, FDs remain a preferred choice for risk-averse individuals prioritizing stability and reliability in their investments.