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A Fixed Deposit is a sort of investment where a person deposits a lump sum amount with a bank for a predetermined amount of time. Interest is paid on deposits made into the FD at a predetermined rate that is decided upon when the account is opened. Depending on their preferences, FD holders can opt to receive their interest either monthly, quarterly, half-yearly, or annually

Because they are among the safest investment options on the market, fixed deposits are very popular. There is no actual chance of a capital loss, and the returns are certain.