FIXED DEPOSITS

Page Title

Home / FIXED DEPOSITS

A fixed deposit (FD) is a financial instrument provided by Indian banks that provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account.

It is known as a term deposit or time deposit in Canada, Australia, New Zealand, and the US, and as a bond in the United Kingdom. They are considered to be very safe investments. Term deposits in India are used to denote a larger class of investments with varying levels of liquidity.

The defining criteria for a fixed deposit are that the money cannot be withdrawn for the FD as compared to a recurring deposit or a demand deposit before maturity.

Link Name
FIXED DEPOSITS

Fixed Deposits are deposits where a particular sum of money is invested for a fixed duration. The duration of Fixed Deposits is flexible. It can range from 7 days to 10 years. The rate of interest for the Fixed Deposit depends on the period for which the funds are locked in.

Just like a Recurring Deposit, a Fixed Deposit amount cannot be withdrawn until the maturity period. Premature withdrawal is allowed after the bank charges a penalty in the rate of interest. The minimum amount of investment for a Fixed Deposit is Rs. 5,000. The rate of interest on the Fixed Deposit ranges from 4% to 7.5%. You can also calculate your rate of interest using the FD calculator.