A fixed deposit (FD) is a secure investment option offered by banks. Investors commit a lump sum for a fixed tenure at a predetermined interest rate. FDs provide safety, stability, and predictable returns. Key features include fixed tenures, constant interest rates, and flexible interest payout options. Benefits include capital preservation, steady income, and portfolio diversification. However, investors should be mindful of interest rate variations, and the impact of inflation on long-term purchasing power. Fixed deposits are a conservative choice for those seeking capital preservation and reliable income.