What is the full form of FD?
- on Jul 01, 2022
FD stands for Fixed Deposit.
|Full Form||Fixed Deposit|
|Category||Business » Banking|
What is FD?
Fixed Deposit is a type of savings account where you deposit money for a set period of time, typically 1-5 years. The interest rate on a Fixed Deposit is higher than a regular savings account. This is because the bank knows that you will not withdraw your money during the fixed period.
When you open a Fixed Deposit account, you will need to choose the amount of money you want to deposit and the length of time you want to deposit it for. You will also need to choose an interest rate. The interest rate will be fixed for the length of your deposit.
Your money will be safe in a Fixed Deposit account. The interest rate will not go down if the market rates go down. However, if you withdraw your money before the end of the fixed period, you may lose some interest.
A Fixed Deposit account is a good way to save money if you can afford to keep your money in the account for the full term. It is also a good way to earn extra interest on your savings.