What is a 'fixed deposit'?
Correct Answer: A fixed deposit is a savings account with a fixed interest rate.
- Step 1: A fixed deposit is a type of bank account.
- Step 2: You put a certain amount of money into this account.
- Step 3: You agree to keep the money in the account for a specific period of time.
- Step 4: The bank pays you interest on the money you deposited.
- Step 5: The interest rate is fixed, meaning it does not change during the deposit period.
- Step 6: At the end of the period, you get back your original money plus the interest earned.
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