A fixed deposit or FD is an investment product offered by banks and Non-Banking Finance Companies (NBFCs). In FDs, you invest for a set amount of time and get a fixed interest rate. You know at the time of investing what interest rate you will get and how much money you will receive at the time of maturity. You also get an option of selecting regular payout of interest. No matter how interest rates move or economy performs, you will get the returns fixed at the time of investing. At the end of tenure, you get back the amount you put in along with the accumulated interest.
