FD is such a scheme through which the bank gives us interest on our deposited money in a fix time period. That is, deposits a fixed amount from time to time for a fixed period. And he gets the maximum rate of interest on that account. What is FD?
What is FD, what is the full form of FD
The full form of FD is Fixed Deposit, Under the supervision of the Government of India, there is an interest given by the banks on your deposits. Which is higher than the simple interest.
In FD, there is a kind of contract between the banks and the depositor, in which the depositor deposits his money with the banks for a limited period. And in return, banks give interest to the depositor on the deposited money. Which is higher than a simple interest. The amount deposited by the depositor is subject to the terms and conditions of the bank time limit for the withdrawal period.
Interest is paid by the bank on the depositor’s money only after the completion of the FD period. The amount of interest is decided as soon as the depositor deposits the money, how much interest the bank will give you.
And the interest rate given by banks in FD always keeps on changing, according to the economy of the country or according to the economy of the bank. But when you deposit your money in FD or Fixed Deposit. So you will be given interest according to whatever interest rate is running at that time. And whether the interest rate is up or down in between, it has nothing to do with you.
FD can be done for 1 year and for 2, 3, 4, 5, etc. years, in which the returns can be different from different banks. Some banks give interest around 5%, 5.6%, 6% etc. It always keeps changing, and if you get FD done in the post office. So you will get more interest than other banks.
In this article you learned what is FD and FD full form. We hope this information will prove useful for you.