Fixed deposit (FD) is a deposit made on a special type savings account that reaps you a fixed interest over a fixed time period on the principal investment that you made. The investor is not privy to access the amount deposited in a fixed deposit account before it matures or reaches the mutually agreed tenure.
Fixed deposits (FDs) have always been a safe bet for investors with a low-risk appetite. Mutual funds (MFs) in comparison though could offer higher returns but are risky investment options. FDs are usually compared with debt funds, which as compared to equity funds are not as volatile and fall in the low to medium risk