What is a Fixed Deposit?

Fixed deposits are popular financial instruments offered by banks and NBFCs. They involve investing a specific amount of money for a predetermined period, earning a fixed interest rate higher than regular savings accounts. Key features include a fixed interest rate, a fixed maturity period with potential penalties for early withdrawal, assurance of principal amount return, and lower risks compared to stocks and mutual funds. It's important for individuals to understand fixed deposits and review different schemes' terms and conditions to choose the most suitable option, considering the competitive interest rates offered by banks and NBFCs.