A Fixed Deposit (FD) is a financial instrument offered by banks and financial institutions that allows individuals to deposit a lump sum amount for a specific period at a predetermined interest rate. The interest earned is typically higher than that of a regular savings account, making it an attractive option for those looking to grow their savings safely. Investors can choose the duration of the deposit, which can range from a few months to several years. At the end of the term, the principal amount along with the accrued interest is returned to the investor. FDs are considered low-risk investments, providing guaranteed returns.