A fixed deposit account is a type of investment account offered by banks and other financial institutions, where an investor deposits a fixed sum of money for a specified period of time (usually ranging from a few months to several years) at a fixed interest rate. The interest rate is typically higher than that offered on a regular savings account, and the rate is fixed for the entire term of the deposit.
Fixed deposit accounts are generally considered to be a safe and low-risk investment option, as the investor is guaranteed to receive the principal and the agreed-upon interest rate at the end of the term. However, they are not as liquid as other forms of investment, as the money cannot be withdrawn before the end of the term without incurring penalties.
