FDs, Bonds & Gold
Fixed Deposits (FDs) are a popular savings tool offered by banks and financial institutions. In an FD, you invest a lump sum of money for a fixed tenure at a predetermined interest rate. Once the tenure ends (known as maturity), you receive the principal amount along with the accumulated interest.
A Fixed Deposit (FD) is a type of investment offered by banks and financial institutions where you deposit a lump sum of money for a specified period at a fixed interest rate. FDs are known for their safety, reliability, and guaranteed returns, making them a popular choice for conservative investors.
- Regular FDs: A standard FD with a fixed interest rate and tenure.
- Tax-Saving FDs: These offer tax benefits but come with a lock-in period of five years.
- Cumulative and Non-Cumulative FDs: In cumulative FDs, interest is compounded and paid at maturity, while non-cumulative FDs pay interest regularly.