<Table> <Tr> <Td> </Td> <Td> The examples and perspective in this article deal primarily with India and do not represent a worldwide view of the subject . You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate . (October 2015) (Learn how and when to remove this template message) </Td> </Tr> </Table> <Tr> <Td> </Td> <Td> The examples and perspective in this article deal primarily with India and do not represent a worldwide view of the subject . You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate . (October 2015) (Learn how and when to remove this template message) </Td> </Tr> <P> A fixed deposit (FD) is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date . It may or may not require the creation of a separate account . It is known as a term deposit or time deposit in Canada, Australia, New Zealand, and the US, and as a bond in the United Kingdom and India . They are considered to be very safe investments . Term deposits in India, Nepal, and Pakistan are used to denote a larger class of investments with varying levels of liquidity . The defining criteria for a fixed deposit is that the money cannot be withdrawn from the FD as compared to a recurring deposit or a demand deposit before maturity . Some banks may offer additional services to FD holders such as loans against FD certificates at competitive interest rates . It's important to note that banks may offer lesser interest rates under uncertain economic conditions . The interest rate varies between 4 and 7.25 percent . The tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and can be as high as 10 years . These investments are safer than Post Office Schemes as they are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC). However, DICGC guarantees amount up to ₹ 1, 00,000 (about $1555) per depositor per bank . They also offer income tax and wealth tax benefits . </P> <P> Fixed deposits are a high - interest - yielding Term deposit and offered by banks in India . The most popular form of Term deposits are Fixed Deposits, while other forms of term Deposits are Recurring Deposit and Flexi Fixed Deposits (the latter is actually a combination of Demand deposit and Fixed deposit). </P>

Terms and conditions of fixed deposits in india