Glossary › Fixed Deposit
What is Fixed Deposit (FD)?
A deposit locked with a bank for a fixed term at a guaranteed interest rate.
An FD pays a fixed, guaranteed rate over a chosen tenure, with no market risk. Interest usually compounds quarterly and is typically taxable. It trades higher safety for lower long-term returns than equities.
Example
₹1,00,000 at 7% for 5 years (quarterly compounding) matures to about ₹1,41,478.