What is Fixed Deposit?

What is Fixed Deposit?

๐Ÿ‘‰๐Ÿ‘‰๐Ÿ‘‰ย https://www.dyclassroom.com/money/what-is-fixed-deposit

Fixed Deposit also known as FD is an investment instrument offered by banks.

You deposit a certain amount of money in a bank as a fixed deposit and earn a higher interest rate than a savings account.

“Interest earned on a fixed deposit account is taxable.”

The time for which you can create a fixed deposit depends on the bank you are opening your FD account. Generally, it is between 7 days to 10 years.

Once you put your money in a fixed deposit account then, it is locked until maturity.

If you want to withdraw your money before maturity then, you have to pay a penalty amount which varies from bank to bank.

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