India, Feb. 24 -- justify;">A steady plan for money should guard capital, earn reasonable returns, and keep access within reach. In uncertain times, many households prefer safe, simple choices. FDs remain part of that mix because the rules are clear and outcomes are easier to estimate.

This blog explains how FDs compare with common alternatives in India, when each can suit different needs, and what to weigh before choosing.

An FD locks funds for a selected term with a known rate. This structure can support discipline. A fixed deposit also reduces interest rate surprises during the tenure. That predictability can support goals such as fees due next year or a down payment planned in stages.

Many banks allow cumulative and non-cumulative ...