Скачать или смотреть What Is a Fixed Deposit (FD)? | Ep 5 of 50 Days of Bank Basics 💰🔒

Welcome to Episode 5 of our “50 Days of Bank Basics” — your daily crash course in understanding how money works, one simple video at a time.
Today’s video is all about something many of our parents and grandparents love: the Fixed Deposit, also called FD.

Let’s break it down — in language so simple that even a 5-year-old can get it!

💰 What Is a Fixed Deposit (FD)?
A Fixed Deposit is when you give your money to a bank for a fixed time, and the bank promises to return it with extra interest.

Imagine this:

You say to the bank,
“Hey, here’s ₹10,000. I won’t touch it for the next 12 months. In return, give me more interest than a savings account.”

The bank says,
“Sure! I’ll give you 6.5% interest. After a year, I’ll return your ₹10,000 + ₹650 extra.”

Simple? That’s an FD!

🧠 How Does It Work?
You choose how much money you want to deposit.

You choose how long you want to keep it locked — 6 months, 1 year, 5 years — your choice.

The bank gives you a fixed interest rate for that time.

You can’t take it out early without paying a penalty.

When the time is over (called maturity), the bank gives you back your original money + the interest earned.

It’s like planting a money tree 🌱 — the longer you let it grow, the more fruit (money) it gives!

📊 Quick Example:
Let’s say you deposit ₹50,000 in a 2-year FD at 7% annual interest.

Here’s what happens:

In Year 1: you earn ₹3,500

In Year 2: you earn ₹3,500 again

At the end: you get ₹57,000 in total
No risk, no worry, no work.

🎯 Why Do People Love FDs?
FDs are:
✅ Safe — Your money is protected (especially in big government banks)
✅ Predictable — You know exactly how much you'll get
✅ Better than savings — Higher interest than a regular savings account
✅ Easy to open — Can be done online or in person, quickly
✅ Great for goals — Like saving for a trip, a gadget, or fees

⚠️ But Remember:
FDs lock your money, so it’s not for emergencies

If you break it early, the bank may reduce your interest

You pay tax on the interest you earn (unless under exemption limits)

Once the rate is fixed, it doesn’t change, even if market rates rise

That’s why it’s called a “Fixed” deposit — fixed time, fixed interest.

🤔 Who Should Consider an FD?
This is perfect for:

Students saving money from part-time jobs

Young adults planning to save for travel or a laptop

Anyone with idle money that won’t be needed soon

People who don’t want to take risks (unlike stock market)

Even many parents open FDs for their children — to grow money for future education.

📚 About This Series:
This is part of our 50 Days of Bank Basics —
A beginner-friendly series to help you understand how money and banking work, without any confusing jargon.

Each day, we cover 1 basic banking or finance term — explained in the simplest way possible.

🎓 By Day 50, you’ll know:

What different accounts, cards, and services do

How to use banking apps

How to grow your money safely

And how to avoid common financial mistakes!

📅 Catch Up On Past Episodes:
Ep 1: What is a Bank?

Ep 2: What is a Savings Account?

Ep 3: What is a Debit Card?

Ep 4: What is a Credit Card?

And coming up:

Ep 6: What is UPI?

Ep 7: What is a Loan?

Ep 8: What is Interest?

💬 Question of the Day:
Have you or your family ever made an FD?
Tell us in the comments — how much was it for and how long did you keep it?
Let’s see who’s the biggest saver here! 💪

💌 Share This Video If:
You want to teach your sibling, friend, or cousin how FDs work

You’re planning to save money for a big goal

You want a safe way to grow your money

🔔 Follow or Subscribe for 45 more powerful episodes that will level up your money knowledge — in just 1 minute a day!

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