A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. The defining criteria for a fixed deposit are that the money cannot be withdrawn for the fixed deposit as compared to a recurring deposit or a demand deposit before maturity. We may offer additional services to fixed deposit holders such as loans against fixed deposit certificates at competitive interest rates. It’s important to note that we may offer lesser interest rates under uncertain economic conditions. FDs offer higher rates of interest, the permissible term form 12 months to 60 months. Usually we offer the interest on fixed deposit's is paid every three months from the date of the deposit. The customer may choose to have the interest reinvested in the FD account. In this case, the deposit is called the Cumulative FD , the interest is paid with the invested amount on maturity of the deposit at the end of the term.