Banking
FD
pronounced: [F-D]
Fixed Deposit is a savings instrument that locks money for a fixed tenure at a predetermined interest rate.
FDs offer higher rates than regular savings accounts and are insured by DICGC up to Rs 5 lakh.
Example
A ₹5 lakh FD at 7.5% p.a. for 1 year earns ₹37,500 in interest. If the interest is compounded quarterly, the effective rate is slightly higher at ~7.65%, earning ₹38,250.
Frequently Asked Questions
Last updated: 21 May 2026