{"id":1486,"date":"2026-08-25T07:47:30","date_gmt":"2026-08-25T07:47:30","guid":{"rendered":"https:\/\/jumpp.finance\/blog\/?p=1486"},"modified":"2026-08-25T07:49:28","modified_gmt":"2026-08-25T07:49:28","slug":"what-is-fixed-deposit","status":"publish","type":"post","link":"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/","title":{"rendered":"What is a Fixed Deposit &#8211; Everything About Returns, Tax, and Withdrawals"},"content":{"rendered":"<div class='main-article-wrapper'>\n<p class=\"wp-block-paragraph\">If you ask someone for advice on your first time investing money, you\u2019ll hear one thing: \u201cFD karwa lo, tension mat lo.\u201d Fixed Deposits are trusted by our parents, grandparents, and even first-time earners. But beyond this comfort factor, how do they actually work? And are they still the best option today?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s see!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Fixed_Deposit\"><\/span>What is a Fixed Deposit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A Fixed Deposit (FD) is a type of low-risk investment offered by banks and financial institutions where you park a lump-sum amount for a fixed period, in return for a guaranteed interest rate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_a_Fixed_Deposit_Work\"><\/span>How Does a Fixed Deposit Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A fixed deposit works by keeping a lump-sum amount with a bank or financial institution for a selected tenure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here is how it generally works:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Choose the deposit amount:<\/strong> Decide how much money you want to place in the FD.<\/li>\n\n\n\n<li><strong>Select the tenure:<\/strong> Choose how long you want to keep the money deposited.<\/li>\n\n\n\n<li><strong>Check the interest rate:<\/strong> The applicable rate depends on the institution, tenure and deposit type.<\/li>\n\n\n\n<li><strong>Select the payout option:<\/strong> Depending on the FD, you can choose cumulative interest or periodic interest payouts.<\/li>\n\n\n\n<li><strong>Receive the maturity amount:<\/strong> At the end of the tenure, you receive the applicable maturity amount.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Some FDs allow premature withdrawal, although the applicable interest rate or a penalty may apply according to the institution&#8217;s terms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What Is the Fixed Deposit Interest Rate?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>fixed deposit interest rate is the rate at which your deposited amount earns interest during the FD tenure<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FD interest rates vary across banks and financial institutions and can depend on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Deposit amount<\/li>\n\n\n\n<li>FD tenure<\/li>\n\n\n\n<li>Type of deposit<\/li>\n\n\n\n<li>Depositor category<\/li>\n\n\n\n<li>Prevailing interest rates<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">What Is Fixed Deposit Tenure?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Fixed deposit tenure is the period for which you choose to keep your money in an FD.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Banks offer different tenure options, ranging from short-term deposits to deposits lasting several years. Many banks offer regular FDs with tenures ranging from <strong>7 days to 10 years<\/strong>, although the available tenure depends on the bank and FD scheme.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A <strong>tax-saving FD has a fixed lock-in period of 5 years<\/strong> and generally does not allow premature withdrawal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What Is Fixed Deposit Maturity?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Fixed deposit maturity is the point at which your selected FD tenure ends.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At maturity, you receive the amount payable according to the terms of your FD. For a cumulative FD, this generally includes your <strong>principal amount plus accumulated interest<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the instructions selected when opening the FD, you may:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Receive the maturity amount in your linked bank account.<\/li>\n\n\n\n<li>Renew the principal for another tenure.<\/li>\n\n\n\n<li>Renew the principal along with the accumulated interest.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Is_FD_Calculation_Done\"><\/span>How Is FD Calculation Done?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>FD calculation helps you estimate the interest earned and maturity amount on a fixed deposit.<\/strong> The final amount depends on your deposit amount, interest rate, tenure and how frequently the interest is compounded.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a cumulative FD, the maturity amount can generally be calculated using the compound interest formula:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A = P (1 + r\/n)^(nt)<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>A<\/strong> = Maturity amount<\/li>\n\n\n\n<li><strong>P<\/strong> = Principal or initial deposit<\/li>\n\n\n\n<li><strong>r<\/strong> = Annual interest rate<\/li>\n\n\n\n<li><strong>n<\/strong> = Number of times interest is compounded in a year<\/li>\n\n\n\n<li><strong>t<\/strong> = FD tenure in years<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if you invest <strong>\u20b91 lakh at 7% p.a. for 2 years<\/strong>, compounded quarterly, the maturity amount would be approximately <strong>\u20b91,14,888<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Fixed_Deposits_in_India\"><\/span>Types of Fixed Deposits in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Common types include <strong>regular FDs, tax-saving FDs, senior citizen FDs, cumulative FDs and non-cumulative FDs<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Cumulative FD<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In a cumulative FD, interest is not paid regularly. Instead, it&#8217;s compounded quarterly or annually and paid only at maturity. This is ideal if you&#8217;re looking to build a lump sum over time without needing regular payouts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Non-Cumulative FD<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This version pays interest monthly or quarterly. Useful for pensioners or those looking for a steady income from their savings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Non-Callable FD<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A non-callable FD cannot be withdrawn before maturity. Because of this restriction, banks often offer higher interest rates compared to regular FDs. It\u2019s suitable for people who are sure they won\u2019t need the funds early.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Tax-Saving FD<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">These come with a lock-in period of 5 years and offer tax deduction under Section 80C (up to \u20b91.5 lakh). However, the interest earned is taxable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><strong>Want to explore how Fixed Deposits compare with other financial instruments?<\/strong><br>Check out our in\u2011depth guide on <a href=\"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/types-of-investments\/\" target=\"_blank\" rel=\"noreferrer noopener\">types of investments<\/a> to make smarter, diversified investment choices.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_the_Benefits_of_a_Fixed_Deposit\"><\/span>What Are the Benefits of a Fixed Deposit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Some common <strong>advantages of fixed deposits<\/strong> include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Predictable returns:<\/strong> The applicable interest rate is generally known when the FD is opened.<\/li>\n\n\n\n<li><strong>No direct market exposure:<\/strong> FD returns do not fluctuate with daily stock-market movements.<\/li>\n\n\n\n<li><strong>Flexible tenures:<\/strong> Banks generally provide several tenure options.<\/li>\n\n\n\n<li><strong>Different interest options:<\/strong> You may choose between cumulative and periodic payouts where available.<\/li>\n\n\n\n<li><strong>Loan facility:<\/strong> Some banks allow eligible customers to take a loan or overdraft against an FD.<\/li>\n\n\n\n<li><strong>Deposit insurance:<\/strong> Eligible bank deposits are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC), subject to prescribed limits.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">DICGC currently insures eligible deposits for up to <strong>\u20b95 lakh per depositor per bank in the same right and same capacity<\/strong>, including both principal and interest. Deposits held across different branches of the same bank are aggregated for this limit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Importantly, deposits mobilised by <strong>NBFCs are not covered by DICGC deposit insurance<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_the_Disadvantages_of_a_Fixed_Deposit\"><\/span>What Are the Disadvantages of a Fixed Deposit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While FDs can provide predictable interest, they also have some limitations:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Limited liquidity:<\/strong> Your money is intended to remain deposited for the selected tenure.<\/li>\n\n\n\n<li><strong>Premature withdrawal conditions:<\/strong> Withdrawing before maturity may affect the applicable interest or attract a penalty.<\/li>\n\n\n\n<li><strong>Inflation risk:<\/strong> If inflation is higher than the return on your FD, the purchasing power of your money may be affected.<\/li>\n\n\n\n<li><strong>Interest-rate opportunity cost:<\/strong> If FD rates rise after you open a deposit, your existing FD generally continues at its contracted rate.<\/li>\n\n\n\n<li><strong>Taxation:<\/strong> Interest earned on an FD may be taxable according to applicable income-tax provisions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Savings_Account_vs_Fixed_Deposit_%E2%80%93_How_Do_They_Differ\"><\/span>Savings Account vs Fixed Deposit &#8211; How Do They Differ<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A savings account and FD both keep money with a bank, but they serve different purposes.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Feature<\/strong><\/td><td><strong>Savings Account<\/strong><\/td><td><strong>Fixed Deposit<\/strong><\/td><\/tr><tr><td>Deposit<\/td><td>Money can generally be added regularly<\/td><td>Usually a lump-sum deposit<\/td><\/tr><tr><td>Tenure<\/td><td>No fixed tenure<\/td><td>Fixed tenure<\/td><\/tr><tr><td>Access to money<\/td><td>Easily accessible<\/td><td>Subject to FD withdrawal terms<\/td><\/tr><tr><td>Interest<\/td><td>Savings account interest rate<\/td><td>FD rate applicable to the deposit<\/td><\/tr><tr><td>Primary purpose<\/td><td>Everyday transactions and liquidity<\/td><td>Keeping money for a selected period<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><a href=\"https:\/\/jumpp.finance\/save\" target=\"_blank\" rel=\"noreferrer noopener\">Open a zero-balance savings account online!<\/a><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Invest_in_a_Fixed_Deposit\"><\/span>How to Invest in a Fixed Deposit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You can generally open a fixed deposit online through your bank or by visiting a branch.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The process usually involves:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Choose a bank, investment app or financial institution.<\/strong><\/li>\n\n\n\n<li><strong>Compare FD interest rates and terms.<\/strong><\/li>\n\n\n\n<li><strong>Select your deposit amount.<\/strong><\/li>\n\n\n\n<li><strong>Choose the FD tenure.<\/strong><\/li>\n\n\n\n<li><strong>Select cumulative or periodic interest payout.<\/strong><\/li>\n\n\n\n<li><strong>Add nominee details.<\/strong><\/li>\n\n\n\n<li><strong>Review premature withdrawal and renewal terms.<\/strong><\/li>\n\n\n\n<li><strong>Complete the deposit and keep the FD confirmation or receipt.<\/strong><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Before opening an FD, compare more than just the interest rate. Consider the tenure, withdrawal conditions, maturity instructions, tax implications and applicable deposit protection.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Also explore: <\/em><\/strong><em><a href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/rd-vs-fd\/\" target=\"_blank\" rel=\"noreferrer noopener\">What is the difference between FD and RD?<\/a><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before you choose an FD, compare interest rates, tenure flexibility, and features offered by different banks. It\u2019s not just about locking money; it\u2019s about using your savings wisely.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FDs_in_India-_FAQs\"><\/span>FDs in India- FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1753337570338\"><strong class=\"schema-faq-question\"><strong><strong>What is the maximum tenure of a fixed deposit?<\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">Many banks offer regular fixed deposits with tenures extending up to 10 years. However, the maximum tenure varies depending on the bank and FD scheme.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1753337589794\"><strong class=\"schema-faq-question\"><strong><strong>What is the maturity amount in an FD?<\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">The maturity amount is the amount payable when the FD tenure ends. For a cumulative FD, it generally includes the original principal and accumulated interest.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1753337600675\"><strong class=\"schema-faq-question\"><strong><strong>What is a cumulative FD?<\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">A cumulative FD reinvests the interest earned during the tenure. The principal and accumulated interest are paid together at maturity.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1753337680878\"><strong class=\"schema-faq-question\"><strong><strong>What is a non-callable FD?<\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">A non-callable FD generally does not allow premature withdrawal before maturity, except under specified conditions.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1753337691861\"><strong class=\"schema-faq-question\"><strong><strong>What is a sweep-in FD?<\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">A sweep-in FD links a savings account to a fixed deposit. Excess savings above a specified threshold may be moved into an FD and accessed according to the bank&#8217;s sweep facility terms.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1753337703556\"><strong class=\"schema-faq-question\"><strong><strong>Is FD interest taxable?<\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">FD interest may be taxable according to applicable income-tax rules. Tax treatment can depend on factors such as the depositor&#8217;s income and tax regime.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1753337909740\"><strong class=\"schema-faq-question\"><strong><strong>What is the difference between FD and RD?<\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">An FD generally requires a lump-sum deposit at the beginning, while an RD allows you to deposit a fixed amount regularly over a chosen tenure.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1753337920843\"><strong class=\"schema-faq-question\"><strong><strong>What is the difference between a savings account and a fixed deposit?<\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">A savings account is designed primarily for regular transactions and easy access to money. A fixed deposit keeps a lump sum for a selected tenure and earns interest at the applicable FD rate.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1787643494411\"><strong class=\"schema-faq-question\"><\/strong> <p class=\"schema-faq-answer\"><\/p> <\/div> <\/div>\n<\/div><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#What_is_a_Fixed_Deposit\" >What is a Fixed Deposit<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#How_Does_a_Fixed_Deposit_Work\" >How Does a Fixed Deposit Work?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#How_Is_FD_Calculation_Done\" >How Is FD Calculation Done?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#Types_of_Fixed_Deposits_in_India\" >Types of Fixed Deposits in India<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#What_Are_the_Benefits_of_a_Fixed_Deposit\" >What Are the Benefits of a Fixed Deposit?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#What_Are_the_Disadvantages_of_a_Fixed_Deposit\" >What Are the Disadvantages of a Fixed Deposit?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#Savings_Account_vs_Fixed_Deposit_%E2%80%93_How_Do_They_Differ\" >Savings Account vs Fixed Deposit &#8211; How Do They Differ<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#How_to_Invest_in_a_Fixed_Deposit\" >How to Invest in a Fixed Deposit?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#FDs_in_India-_FAQs\" >FDs in India- FAQs<\/a><\/li><\/ul><\/nav><\/div>\n","protected":false},"excerpt":{"rendered":"<p>If you ask someone for advice on your first time investing money, you\u2019ll hear one thing: \u201cFD karwa lo, tension mat lo.\u201d Fixed Deposits are trusted by our parents, grandparents, and even first-time earners. But beyond this comfort factor, how do they actually work? And are they still the best option today?&nbsp; Let\u2019s see! What &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;What is a Fixed Deposit &#8211; Everything About Returns, Tax, and Withdrawals&#8221;<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":5204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[51],"tags":[4601,532,4602,4599,4593,4596,4594,4598,4595,4603,4597,4600,4592,490,495,488,498,494,489],"class_list":["post-1486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-growing-your-wealth","tag-advantages-of-fixed-deposit","tag-benefits-of-fixed-deposit","tag-disadvantages-of-fixed-deposit","tag-fd-calculation","tag-fixed-deposit-interest-rate","tag-fixed-deposit-maturity","tag-fixed-deposit-meaning","tag-fixed-deposit-tenure","tag-how-fixed-deposit-works","tag-how-to-invest-in-fixed-deposit","tag-maximum-tenure-of-fixed-deposit-is","tag-savings-account-vs-fixed-deposit","tag-types-of-fixed-deposits","tag-what-is-cumulative-fd","tag-what-is-difference-between-fd-and-rd","tag-what-is-fixed-deposit","tag-what-is-maturity-amount-in-fd","tag-what-is-non-callable-fd","tag-what-is-sweep-in-fd"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is Fixed Deposit, and is it still worth it today?<\/title>\n<meta name=\"description\" content=\"What is Fixed Deposit? 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A low-risk investment by banks where you park a lump sum for a fixed period at a guaranteed interest rate. 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The principal and accumulated interest are paid together at maturity.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#faq-question-1753337680878","position":4,"url":"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#faq-question-1753337680878","name":"What is a non-callable FD?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"A non-callable FD generally does not allow premature withdrawal before maturity, except under specified conditions.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#faq-question-1753337691861","position":5,"url":"https:\/\/jumpp.finance\/blog\/growing-your-wealth\/what-is-fixed-deposit\/#faq-question-1753337691861","name":"What is a sweep-in FD?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"A sweep-in FD links a savings account to a fixed deposit. 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