FIXED DEPOSIT ACCOUNT

A fixed deposit account is a type of investment account offered by banks and other financial institutions, where an investor deposits a fixed sum of money for a specified period (usually ranging from a few months to several years) at a fixed interest rate. The interest rate is typically higher than that offered on a regular savings account, and the rate is fixed for the entire term of the deposit.

In return for the deposit, the bank guarantees to pay the investor a fixed rate of interest on their deposit at the end of the term. The interest earned on a fixed deposit account is usually paid out at the end of the term, and the investor can choose to reinvest the principal and interest or withdraw the funds.