Banking & savings
Fixed deposit
Also known as: FD
A deposit where you lock money with a bank for a fixed term at a guaranteed interest rate.
An FD lets you park a lump sum for a chosen period, earning a fixed, guaranteed interest rate.
It is safe and predictable, but returns often barely beat inflation, and the interest is fully taxable at your slab.
Great for short-term goals and emergency buffers, weak as a long-term wealth builder.
For example
A ₹1L FD at 7% for a year gives ₹7,000 interest, but after tax and inflation, your real gain may be close to nothing.