What Is a Fixed Deposit and How It Works

A fixed deposit is one of the simplest and safest financial products. You lock your money for a set time, and the bank pays you interest. No daily decisions, no stress — just patience.

5 Things to Know About Fixed Deposits:

  1. You deposit money for a fixed period — for example, 3, 6, or 12 months.
  2. The interest rate is fixed — it doesn’t change during the term.
  3. You can’t easily withdraw early — or you may lose part of the interest.
  4. Risk is very low — it’s safer than stocks or crypto.
  5. Best for short-term goals — like saving for fees, travel, or emergencies.

👉 A fixed deposit won’t make you rich fast — but it keeps your money safe and growing.