Advantages of Investing in an FD

Fixed deposit is a financial product where investors deposit a lump sum amount with a bank or other financial institution for a fixed time. In exchange, the institution pays a fixed interest rate during the entire tenure, ranging from 7 days to several years. At maturity, investors receive the invested amount and the assured interest earnings, regardless of market fluctuations. This makes fixed deposits suitable for risk-averse investors looking for stable returns.