A fixed deposit is among the best investment options for guaranteed returns. They are often counted as one of the most reliable and safe investment options. Many people prefer FDs over saving accounts, due to the surety of better returns, owing to the higher bank FD rates offered; and the fact that most private and public banks offer FDs and that they can also be easily opened in a post office.
Apart from offering great and assured returns, fixed deposits are extremely flexible and allow you to make investments for terms as short as a week, a couple of months, or for up to 10 years. The interest on such deposits is payable at maturity, depending on the bank FD rates being offered and the term you choose – annually or monthly.
Fixed deposits are a great way to encourage savings and inculcate the habit of accumulating money for future use. It requires you to invest a specific amount in an account for a specific period of time, without making a withdrawal before the tenure ends. However,
