FTD Full Form in Banking is Fixed Term Deposit. Fixed deposits are investments in which a specific sum of money is committed for a set period of time. Fixed Deposits have a variable maturity date. It might last anywhere from Seven days to ten years. The interest rate on the Fixed Deposit is determined by the length of time the funds are tied in. A Fixed Deposit sum, like a continuous Deposit, cannot be removed until the maturity time. Premature withdrawal is permitted if the bank imposes a penalty on the interest rate.
A Fixed Deposit requires a minimum investment of Rs. 5,000. The Fixed Deposit interest rate ranges from 4% – 7.5%. You can also use the FD calculator to compute your interest rate. Some banks offer a sweep-out service, in which the amount in a Bank Account that exceeds a certain level is immediately transferred to the Fixed Deposit. This increases the interest rate on the Savings Account. Because a Fixed Deposit gets held for a greater amount of time, it yields a higher interest rate. A recurring deposit invests a set amount over a set period of time. This means that each payment generates interest for a shorter period than the prior payment. The interest rate on a Fixed Deposit with the same maturity time is higher than the interest rate on a Recurring Deposit.