A fixed deposit (FD) is a type of investment offered by banks and non-banking financial institutions, where you deposit a sum of money for a fixed period, typically ranging from 7 days to 10 years. In exchange, you receive a higher interest rate, which is usually higher than those offered by regular savings accounts. The FD is a time deposit, which means that you cannot withdraw the money for the specified term, and if you do, you may face penalties or interest deductions. This type of investment is suitable for those who want to park their money for a fixed period without worrying about market fluctuations, and are looking for a low-risk, stable return. The interest rate offered varies depending on the institution, term, and amount deposited. FDs are a popular option for those planning for long-term goals, such as retirement or a down payment on a house. Overall, an FD provides a fixed rate of return on your investment, making it an attractive option for those who want to grow their wealth over time.
Stay informed: State Bank of India’s latest fixed deposit interest rates for 1-year, 3-year, and 5-year terms for seniors and general investors alike
by newsworm | Dec 3, 2024 | Banking, State Bank of India | 0 comments