Full Form of FTD

What is FTD?

A Fixed Term Deposit (FTD) is a financial instrument offered by banks and post offices in India where an investor deposits a lump sum for a predetermined period at a fixed interest rate. The tenure typically ranges from 7 days to 10 years, with interest rates varying based on the term and the institution. FTDs are considered one of the safest investment options as they are insured up to ₹5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC). In India, FTDs are widely used by individuals seeking capital preservation and guaranteed returns, often for goals like retirement planning or children's education. They are also popular among senior citizens who receive higher interest rates. Banks like SBI, HDFC, and ICICI offer flexible features such as loan against FTD and premature withdrawal (with penalty). While the term 'Fixed Term Deposit' is formal, it is often shortened to 'FD' in common parlance. FTDs play a critical role in India's household savings, accounting for a significant portion of bank deposits. For competitive exams like IBPS, SBI PO, or RBI Grade B, understanding FTD features—such as compounding frequency, TDS on interest, and nomination rules—is essential. The product differs from recurring deposits (RD) where periodic installments are made. Overall, FTD remains a cornerstone of conservative investment strategy in India, balancing safety and moderate returns.

FTD का फुल फॉर्म

Example

I opened an FTD of ₹2 lakh for 5 years at an interest rate of 7.5% per annum with the State Bank of India.

FTD — frequently asked questions

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