Fixed deposit
Market basicsAlso called: FD
A bank deposit paying a contracted rate over a fixed term.
In plain terms
Excellent for money needed in eighteen months, poor for money needed in eighteen years.
1678 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Corporate FD
Market basicsA fixed deposit with a company rather than a bank.
In plain terms
One to two percent more, and no deposit insurance. The extra is the price of credit risk.
Sweep-in FD
Market basicsA fixed deposit linked to a savings account that automatically converts back to cash when the balance runs short.
In plain terms
Earns deposit interest while behaving like a savings account. The natural home for an emergency fund.
Capital Gains Account Scheme
Regulation & taxAlso called: CGAS
A specified bank account into which the unutilised part of a gain must be deposited before the due date for filing the return, to keep a reinvestment exemption alive until the purchase or construction is completed.
In plain terms
The deadline is for getting the money in, not for spending it. Buying the house comfortably inside the two-year window does not rescue a deposit that was never made, and money left visibly untouched in a savings account or a fixed deposit is not a deposit under the scheme.
Inflation
Market basicsThe rate at which the general price level rises, reducing what a given sum of rupees can buy.
In plain terms
The risk a fixed deposit does not remove. The statement balance only ever rises, which is exactly why thirty years of erosion goes unnoticed.
InvIT
Market basicsAlso called: Infrastructure Investment Trust
Infrastructure Investment Trust — a listed trust owning operating infrastructure such as roads, transmission lines or pipelines, distributing the income they produce.
In plain terms
Its headline yield is not comparable to a fixed deposit. A concession has a finite life, so part of that generous distribution is your own capital coming back.