Fixed deposits (FDs) have been a cornerstone of financial planning for Indian investors, offering a safe and reliable way to grow money. With guaranteed returns and flexible tenures, FDs cater to a variety of financial needs, from building an emergency fund to planning for retirement. However, one crucial decision when investing in FDs is choosing between long-term and short-term deposits. Each option has its own advantages and disadvantages, depending on your financial goals, risk appetite, and liquidity needs. Tools like an FD rate calculator can help you compare returns and make informed decisions. This article explores the pros and cons of long-term versus short-term FDs, offering insights to help you choose the right option.

What are fixed deposits?

Fixed deposits are investment instruments where you deposit a lump sum with a bank or financial institution for a fixed tenure. In return, you earn a fixed interest rate, which remains unaffected … READ MORE ...