What is FD, What is the full form of FD

FD is a scheme through which the bank gives us interest on our deposited money in a fixed time period i.e. deposits a fixed amount from time to time for a certain period and gives it the maximum rate on that account.

What is FD, What is the full form of FD

The full form of FD is Fixed Deposit, an interest paid by the banks on your deposits under the supervision of the Government of India, 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 the banks pay interest on the deposited money to the depositor, which is a simple interest. It is more than that, the amount deposited by the depositor is subject to the condition and rule of the bank time limit for the period of withdrawal.

Interest is given by the bank on the depositor’s money only after the FD period is over, the amount of interest is decided as soon as the depositor’s money is deposited, how much interest the bank will give you.

And the interest rate given by banks in FD always changes, 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, you will get whatever interest at that time. The rate is going on, according to that interest will be given to you, and you have nothing to do with whether the interest rate is up or down in the middle.

FD can be done for 1 year and for 2, 3, 4, 5, etc. years, in this your return can be different by different banks, some banks give interest around 5%, 5.6%, 6% etc., This is always changing, and if you get FD done in the post office, you will get more interest than other banks.

In this article you learned what is FD and FD full form in English, we hope this information will prove useful for you.

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