What is fixed deposit?

Answer 1

Fixed Deposit is a powerful plan offered by many Banks and NBFCs to get high return on investment. Fixed Deposit yields high return when the tenure or period of fd is large. It means more time, more amount, more money.

There are so many Banks and NBFCs which offers high interest rate on fixed deposit viz. Karnataka Bank, State Bank, Bajaj Finserv, RBL Bank etc.

The interest rates in these financial institutions differ from tenure to tenure and amount to amount.

Answer 2

A Fixed Deposit is an agreement between a customer and bank wherein the customer agrees to deposit a fixed sum of money for a specific duration of time. The bank in return accepts the deposit and offers to pay the customer a fixed interest which can be received on a regular basis or at the end of the deposit.

Lets say you deposit Rs. 10,000/- to ICICI Bank for 5 years, and the bank offers you a 8% every year, you will get Rs. 800/- every year for having the deposit with the bank. You can opt to get this Rs. 800/- every month or choose to get Rs. 4000/- at the end of 5 years.

Answer 3

A deposit account is one in which you keep a fixed sum of money for a specific duration (Usually atleast a few months) based on an agreement with the bank. The bank does not expect you to withdraw funds regularly from this account and hence gives you a better interest rate. These are also called Term Deposit accounts or Fixed Deposit accounts.