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FD full form is Fixed Deposit. FD is a type of investment in which an individual invests a lump sum amount for a specific period of time with a bank. The amount deposited in the FD earns interest at a fixed rate which is set at the time of the account opening. FD holders can choose to receive the interest earned either monthly, quarterly, half-yearly or annually as per their preference. Fixed Deposits are popular as they are one of the safest investment options available in the market. The returns are guaranteed and there is no real risk of a capital loss. Moreover, they offer a better rate of interest when compared to Savings Accounts. This makes Fixed Deposits a safe yet attractive investment option for anyone looking to earn stable and predictable returns. Some tax-saving FDs can also help to save taxes. BENEFITS OF FIXED DEPOSIT 1. Safety: FDs are considered a safe investment option, especially when offered by banks and financial institutions that are regulated and insured. They provide guaranteed returns on the principal amount invested. 2. Stability: FDs offer stable returns, as the interest rate is fixed at the time of investment and remains constant throughout the tenure of the deposit. This predictability can be beneficial for individuals seeking steady income streams. 3. Assured Returns: Unlike other investment options such as mutual funds or stocks, FDs provide assured returns. Investors know exactly how much they will earn at the end of the maturity period, making it easier to plan finances. 4. Variety of Tenures: FDs typically offer a range of tenures, from as short as seven days to several years. This flexibility allows investors to choose a tenure that aligns with their financial goals and liquidity needs. 5. Liquidity Options: While FDs are considered as fixed-term investments, many banks offer liquidity options such as premature withdrawal or loan against FDs, providing access to funds in case of urgent financial requirements. DOCUMENTS REQUIRED FOR FIXED DEPOSIT 1. Identity Proof 2. Address Proof 3. PAN Card 4. Passport size photograph 5. KYC documents 6. Nomination form 7. Account opening form