Fixed deposits are one of the most popular ways for people to save money and invest because they come with guaranteed returns and no risk. Investors receive a larger interest rate from fixed deposits than they would from a typical savings account. A fixed deposit's maturity value is determined by the date the depositor chooses for it to mature. Even if the returns on fixed deposits are not as great as those on mutual funds and stocks, people choose them because they are low risk and guarantee returns.
