A bank deposit that constitutes an investment product/ instrument offered by banks and non-banking finance companies (NBFCs), in which a depositor invests the deposited amount for a set amount of time and receives a fixed interest rate.

The depositee bank makes the interest rate known to the depositor as well as the amount he/ she will receive at the time of maturity. The depositor can also have the option to receive accumulated interest in regular payments.

The main benefits of fixed deposits (FDs) include guaranteed returns (irrespective of how interest rates move or economy performs), safe investment, and surety at maturity, and flexible payout options, etc.

Fixed deposits are also known as term deposits or time deposits.