FD vs Life Insurance: Which is the Right Choice for You?

When it comes to securing your financial future, Fixed Deposits (FDs) and Life Insurance are two of the most common tools that individuals consider. While both serve the purpose of financial security, they cater to different needs and goals. In this article, we’ll dive deep into the differences between [**FDs and Life Insurance**](https://datesfinserv.com/fd-vs-life-insurance/), helping you make an informed decision. # What is a Fixed Deposit (FD)? A [**Fixed Deposit (FD)**](https://datesfinserv.com/fd-vs-life-insurance/) is a financial instrument offered by banks and Non-Banking Financial Companies (NBFCs). It allows you to invest a lump sum of money for a fixed tenure at a predetermined interest rate. FDs are known for their safety and guaranteed returns, making them a popular choice among conservative investors.