Everything You Need To know About Fixed Deposit (FD) !!!
Everything You Need To know About Fixed Deposit (FD) !!! A fixed deposit ( FD) is a bank-provided financial instrument that provides borrowers with a higher interest rate than a normal savings account until the due date. They may or may not allow a separate account to be established. This is known in Canada , Australia , New Zealand, and the US as a term deposit or time deposit, and in the United Kingdom and India as bond. They are considered very secure investments. Term deposits in India and Pakistan are used to describe a broader investment class, with varying liquidity rates. The key criterion for a fixed deposit is that before maturity, the money can not be withdrawn from the FD as opposed to a revolving deposit or demand deposit. Some banks may offer additional services to holders of FDs such as loans at competitive interest rates against FD certificates. It's important to note that under uncertain economic conditions banks can offer lower interest rates. The rate of inte...