A Fixed Deposit (FD), also known as a term deposit, is a popular financial instrument offered by banks and Non-Banking Financial Companies (NBFCs). It allows you to invest a specific amount for a fixed tenure at a predetermined interest rate. At maturity, you receive your principal amount along with the accrued interest.

Key Features of FDs:

A. Investment & Returns

1. You invest a fixed amount for a chosen duration.
2. The interest rate remains constant throughout the tenure.
3. At maturity, you receive the invested amount plus interest.

B. Interest Rates & Tenure

1. The interest rate varies depending on the bank/NBFC and the tenure.
2. FD durations range from 7 - 14 days (short-term) to 10 years (long-term).