Fixed Deposits (FDs) are one of the most popular and secure investment options in the Indian capital market, offering stable returns and capital safety. These financial instruments are provided by banks, post offices, and Non- Banking Financial Companies (NBFCs), allowing individuals to deposit a lump sum amount for a fixed tenure at a pre-determined interest rate. The interest rates on FDs typically range from 3% to 7% annually, depending on the tenure and institution, with senior citizens often enjoying higher rates. FDs are particularly favored in India for their simplicity and risk-free nature, as they are not affected by market volatility. Moreover, the Deposit Insurance and Credit Guarantee Corporation (DICGC), ensuring additional security, insure deposits up to Rs.5 lakh per depositor per bank. Investors can choose between cumulative FDs, where interest is compounded and paid at maturity, or non-cumulative FDs, offering periodic interest payouts. While FDs are not as liquid as savings accounts, they allow premature withdrawal with penalties or partial withdrawals in certain cases. Tax-saving FDs with a five-year lock-in period also provide deductions under Section 80C of the Income Tax Act. However, the post-tax returns may be lower than inflation, making FDs more suitable for conservative investors or as part of a diversified portfolio.