Fixed deposits are financial instruments wherein you deposit money for fixed tenures to earn interest. Interest earned is more than that of a savings account. You do not need a separate account for an FD as the money can be frozen in your existing account.
FDs differ from recurring deposits as you cannot withdraw money from them before maturity without incurring penalties. If you do so, the predetermined rate of interest decreases and you might be charged penalty.
Benefits of an FD
From here you can get the more reasons why should you opt FD
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