The guaranteed rate of return is the primary reason why people prefer to invest their money in a fixed deposit.
Interest tax threshold
Variable tenure

Simple liquidation

Loans secured by a fixed deposit

Lowering interest rates

Invested funds

Withdrawal penalties

Fixed deposits (FDs) offer several advantages, making them a popular investment choice. First, they provide guaranteed returns, as the interest rate is fixed for the entire term, shielding you from market fluctuations. This makes FDs a low-risk investment, ideal for conservative investors. Additionally, FDs offer flexible tenures, ranging from a few months to several years, allowing you to align your investment with your financial goals. Interest earned on FDs is generally higher than regular savings accounts, enhancing your savings over time. Many banks also allow loans against FDs, offering liquidity without breaking the deposit. Moreover, FDs can be a reliable source of regular income, especially for retirees, as they offer options for periodic interest payouts.