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Fixed Deposit is an investment scheme provided by banks where you invest a fixed amount for a specific period at a fixed rate of interest. The total returns contains invested amount with a compound interest return. It is one of the most popular investment and a significant portion of savings options in India. Therefore, a FD investment becomes an ideal option for those who want assured returns with minimum risk factor.

APR, the annual percentage rate reflects the amount of simple interest that we owe. It is the interest rate charged by a lender on a yearly basis, expressed in the form of a percentage.The interest rate is expressed in the form of percentage. APY, the annual percentage yield is used to calculate the interest rate earned on an investment or savings account taking into account the effect of compunding interest.

Fixed Deposit and Recurring Deposit are popular investment options in India. They are risk-free investments and offer decent returns. But how do you choose between the two? Let us understand the features, benefits and differences between FD and RD in detail.

Fixed deposits ensure a secured investment as it not only provides an opportunity to accumulate funds in the long term but also provide fixed returns irrespective of market fluctuations. A senior citizen fixed deposit account is also known as a term deposit.