What is fixed deposits and mutual funds in banks?

Question

hi! i am new to banking and has account in canara bank and i want to know how fixed deposit works.presently i am having 20,000 and want to fixed deposit them for 1 year at 9% interest rate.so,tell me that will i get monthly interset or annual interest.plz tell what if i did'nt disturbed my 20,000 for 1year.what money i am going to get after 1 year for 9%?also plz tell me which banks are better for FD in hyderabad.what r MUTUAL FUNDS?.i know that MD is investing but don know how it works.shall i go for FD or MD?plz suggest?thank u.

Answer 1

You will get interest on Fixed deposit. 9% is the annual interest rate. It will be paid as per the bank rules.

Mutual Fund invests the money in share market. The value of your money may go up or down in mutual fund depending upon the market situation. Go with this if you are willing to take the risk.