fixed-deposit

Vocabulary Word

Definition

'Fixed Deposit' is a financial tool offered by banks and financial institutions. You agree to deposit a certain amount of money for a fixed period, and the bank pays you interest. When that period ends, you get your money back along with the interest.

Examples in Different Contexts

In retirement planning, 'fixed deposits' can be used to build a secure, low-risk investment portfolio. A retirement planner might advise, 'Allocating part of your retirement savings to fixed deposits can guarantee a fixed income stream in your later years.'

Practice Scenarios

Banking

Scenario:

Your bank is offering an array of deposit schemes. Can you suggest one with a decent reward and no risk?

Response:

I'd recommend opting for our term fixed deposit plan. It offers a good interest rate and your capital is safe.

Personal Finance

Scenario:

Saving money is important to me, but I don't want any risk. Where should I put my savings?

Response:

You may consider making a fixed deposit for a portion of your savings. It's a low-risk option with consistent returns.