Fixed Deposit (FD):

A Fixed Deposit is a financial instrument offered by banks or financial institutions where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate. Here's what happens:

1. Deposit: You invest a specific amount of money.

2. Tenure: You choose a fixed period (e.g., 1 year, 5 years).

3. Interest: The bank pays interest on your deposit, which can be compounded monthly, quarterly, or yearly.

4. Maturity: At the end of the tenure, you receive your principal amount plus the accumulated interest.

Insurance:

Insurance is a contract between you and an insurer where you pay premiums in exchange for financial protection against specific risks. Types include:

1. Life Insurance: Provides financial support to your family in case of your demise.

2. Health Insurance: Covers medical expenses like hospitalization or treatments.

3. Vehicle Insurance: Protects against damage or theft of your vehicle.

4. Property Insurance: Covers damages to your home or property.