A Fixed Deposit is a type of liquidity management instrument offered by banks/NBFcs to their customers.
The holder makes an agreed-upon amount of money available for a specified period of time for a fixed rate of interest is know as Fixed Deposit account.
This means that the elements which determine the return are:
1) The amount you deposit
2) The time period for which you deposit it
3) The rate of interest you earn.
Fixed Deposit, also known as a Term Deposit or Time Deposit, is another term of letting money from bank to bank for some interest rate.
FDs are one of the most common ways in which you can invest your money in India.
Amount in Fixed Deposit is a specific number of days. In India, it is common for the banks/NBFCs to offer FDs up to 7 years.
Banks count the number of days in a 12 month period as 365 days and start calculating the interest on the 1 st day of opening an FD.
The interest rate also gets fixed too in Fixed Deposit. The bank promises not to withdraw any money from the deposit before the term ends.
If you do not intend to withdraw money from your deposit at the end of its term, then this is an attractive option.
Open FD account now and make the most of your money and earn a good interest rate.
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