Fixed deposit is an investment vehicle which allows investors to put their idle money into and turn it into guaranteed returns. These returns are calculated at fixed FD rates in a specific time period ranging from 7 days to up to 10 years (20 years in some cases.) As the name suggests, the rate of interest is fixed and does not fluctuate with market swings. This is the USP of fixed deposits – guaranteed returns with negligible risk. Fixed deposits are offered by Financial Institutions, Non-Banking Finance Companies (NBFCs), Manufacturing Companies, Housing Finance Companies & Government Companies.