Fixed deposits (FDs) are a popular investment option offered by banks and financial institutions. A fixed deposit is a type of investment where you deposit a certain amount of money with a bank for a fixed period of time, usually ranging from a few months to several years. The money you deposit earns a fixed rate of interest during the tenure of the deposit.
Fixed deposits offer a fixed interest rate that remains unchanged throughout the tenure of the deposit. The interest rate is determined by the bank or financial institution and may vary based on factors such as the tenure of the deposit and prevailing market conditions.
Also Read: FD Interest Rates For Senior Citizens: Check Highest Rates In Different Banks Here
The interest earned on fixed deposits can be paid out periodically, such as monthly, quarterly, or annually, or it can be compounded and paid along with the principal amount at maturity. The payout frequency and options may vary depending on the bank’s policies.
FD Interest Rates As On June 14 (See Chart Below)
Banks provide a nomination facility for fixed deposits, allowing the depositor to nominate a person who will receive the deposit and its proceeds in the event of the depositor’s death.
It’s important to note that the specific terms and conditions of fixed deposits may vary among different banks and financial institutions in India. It is advisable to thoroughly read the terms and seek advice from a financial professional before investing in fixed deposits.
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