Fixed Deposit (FD)
FinanceA financial instrument provided by banks which offers a higher rate of interest than a regular savings account until a given maturity date.
A Fixed Deposit (FD) is an investment where you deposit a certain amount of sum in a bank for a fixed period at a fixed rate of interest.
Key Features:
- Tenure: Can range from 7 days to 10 years.
- Interest: Usually higher than savings accounts. Interest can be paid out periodically or compounded.
- Premature Withdrawal: Usually allowed but involves a penalty.
FDs often appear in bank statements as large lump-sum debits (when created) or credits (when matured), frequently accompanied by interest credits and TDS deductions.
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