The Smart Investor’s Guide to Fixed Deposits

Fixed Deposit, also known as Term Deposit, is an investment product that provides guaranteed returns to its investors. It invests for a fixed tenure at fixed interest rates that are offered at the time of opening a Fixed Deposit. FDs are offered by Banks, Non-Banking Financial Companies (NBFCs), and corporate institutions. NBFCs and Corporate bodies offer higher interest rates than banks. Why Fixed Deposits Remain a Popular Investment Option The popularity of FDs stems from their assured interest rates, flexible tenure, and zero market risk. Unlike mutual funds or stocks, FDs do not demand constant monitoring. They cater to individuals seeking capital protection with steady returns. For families, retirees, and risk-averse savers, FDs continue to be the preferred option for safe wealth preservation.