Long-term FD vs. short-term FD.
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Both long-term FD and short-term FD have their advantages and features according to the financial goals.
Short-term FD:
In short-term FD you can invest for a short period (a few days to two years) only. Also, it is good for short-term liquidity needs you can access your money whenever you need.
Long-Term FD:
In long-term FD you can invest for a long period (5 to ten years). Long-term FD provides higher interest rates and is good for long-term financial goals.
So, both long-term FD and short-term FD have their own benefits. If you want higher interest returns then long-term FD is a good option. And, If you have liquidity needs shortly then short-term FD is a good option.