{"id":8270,"date":"2025-08-12T06:56:11","date_gmt":"2025-08-12T06:56:11","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=banking&#038;p=8270"},"modified":"2025-08-12T06:56:11","modified_gmt":"2025-08-12T06:56:11","slug":"long-term-fixed-depositfd-meaning-interest-rates-benefits","status":"publish","type":"banking","link":"https:\/\/lemonn.co.in\/blog\/banking\/long-term-fixed-depositfd-meaning-interest-rates-benefits\/","title":{"rendered":"Long Term Fixed Deposit(FD) &#8211; Meaning, Interest Rates &#038; Benefits"},"content":{"rendered":"\n<p>Short-term fixed deposits generally refer to tenures of 7 days to 1 year. They offer more flexibility than long-term FDs and help you park surplus funds for a brief period while earning a higher return than a savings account. The table captures key features of short-term and long-term FDs.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Attribute<\/th><th>Short-term FD<\/th><th>Long-term FD<\/th><\/tr><\/thead><tbody><tr><td>Typical tenure<\/td><td>7 days\u20131 year<\/td><td>1\u201310 years<\/td><\/tr><tr><td>Interest rate<\/td><td>Slightly lower than long-term FDs but higher than savings<\/td><td>Generally higher; benefits from compounding<\/td><\/tr><tr><td>Liquidity<\/td><td>High; ideal for emergency funds<\/td><td>Lower; early withdrawal penalties apply<\/td><\/tr><tr><td>Suitable for<\/td><td>Parking surplus cash temporarily<\/td><td>Building wealth for long-term goals<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Short-term FDs suit investors who prioritise liquidity and want to earn safe returns on surplus funds. Long-term FDs, on the other hand, benefit from higher rates and compounding. Evaluate your goal before choosing.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-8270","banking","type-banking","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking\/8270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/banking"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=8270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}