New Delhi, March 6 -- Fixed Deposits (FDs) are often viewed as a safe and reliable investment tool as they tend to offer guaranteed returns with higher interest rates than savings accounts, making them ideal for risk-averse investors.

Through a fixed deposit, or FD, an individual can allocate a lump sum amount in a financial institution for a predetermined period and earn interest at a fixed rate. Because returns are locked in at the time of investment, FDs are often preferred by investors looking for stable and predictable earnings, something which is not assured in stocks and mutual funds.

The tenure for fixed deposits can range from a few days to several years, depending on the bank's offering. Generally, longer tenures may offer sli...