Bank FDs or bank fixed deposits, on the other hand, guarantee a fixed interest rate irrespective of market uncertainties. Market-linked instruments such as stocks and equity funds may be attractive for many but they are unable to offer fixed returns, say financial experts.
Traditionally a choice of investors with a low-risk appetite, bank FDs offer a safe source of investment unlike their equity-related peers. Bank FDs or bank fixed deposits have been a favourite instrument to park surplus money for many investors.
