Fixed deposit Investment

Secure Your Future, The Simpler, the Smarter

What are Fixed Deposits?

Fixed Deposits, commonly known as FDs, are a popular investment option provided by banks and non-banking financial companies. In this you deposit a certain amount of money for a fixed period, ranging from a few months to several years. During this time, your money remains locked away, and in return, the bank or financial institution offers you a guaranteed fixed interest rate.

Fixed Returns

Unlike risky investments, FDs offer a fixed interest rate throughout the term, allowing for predictable returns.

Security

From backed by banks or financial institutions, FDs provide a safe investment option with minimal risk.

Higher Interest Rates

Compared to regular savings accounts, FDs generally offer higher interest rates. This allows your money to accumulate interest at a faster pace.

Flexibility

Investors can choose deposit tenures according to their financial goals, ranging from short-term to long-term periods.

Types of Fixed Deposit

There are different types of Fixed Deposits (FDs) available, and each comes with its benefits to match your financial goals

Regular Fixed Deposit

These are the standard FDs in which you put in a lump sum for a set time, and the bank gives you a guaranteed interest rate. It's a safe and easy way to watch your money grow a little bit extra.

Corporate Fixed Deposit

Similar to the regular fixed deposits offered by banks, these let you invest a lump sum of cash for a set period. Instead of a bank, your money will be deposited with a company.

Tax-saving Fixed Deposit

This FD lets you grow your money with a guaranteed interest rate, plus get a tax break under Section 80C. To avail this your money is locked away for 5 years..

Senior Citizen Fixed Deposit

These special FDs are designed just for seniors. They offer higher interest rates than regular FDs to help you make the most of your retirement savings.

Cumulative Fixed Deposit

Regular Fixed Deposits give you interest payouts, but Cumulative Fixed deposits are different. They take all that interest earned and roll it back into your savings each year or quarter. It keeps getting bigger and bigger. This means you get a much larger payout at the end, perfect if you're looking to grow your savings for a big goal.

Non-cumulative Fixed Deposit

Unlike Cumulative Fixed Deposits, Non-cumulative Fixed Deposits give you your interest more often. You can choose to get it monthly, quarterly, or even yearly, depending on your needs. This is a great option if you're looking for a steady stream of extra cash to help with your budget.

Flexi Fixed Deposit

In this, you link your savings account to your Fixed deposit account, so you can withdraw cash when needed. They provide higher interest rates than your savings account.

NRO/NRE Fixed Deposit

NRO Fixed Deposits serve Indians abroad, enabling deposit of Indian earnings with growth through fixed deposits. Earned interest can be remitted abroad; repatriation of principal follows set limits.
NRE Fixed Deposits cater to NRIs, offering tax-free deposit of overseas earnings, with both interest and principal repatriatable under specified rules

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Frequently Asked Questions

Who offers FDs?

FDs are provided by various institutions in India, including banks (both public and private), NBFCs, and India Post Office. It’s important to compare offerings such as interest rates and terms before choosing where to invest.

What are the Current FD Rates?

FD rates differ from bank to bank and change based on what’s happening in the market. You can find the latest rates on the bank’s website, by giving them a call, or just dropping by. It’s always good to shop around and compare rates before you decide where to put your money.

Eligibility Criteria for Fixed Deposit Investment?

To invest in fixed deposits (FDs), you typically need to be a citizen of India, have a valid identity proof like an Aadhaar or PAN card, and be of legal age (usually 18 years or older). Minors can also invest with a parent or guardian as joint holders, and NRIs may have specific conditions to meet. Always check with the institution for any additional requirements.

Are there any differences in FD offerings between banks and NBFCs?

While both banks and NBFCs offer FDs, interest rates, tenure options, and terms and conditions may vary between institutions. It’s essential to compare offerings and consider factors like interest rates, reputation, and regulatory oversight before choosing where to invest. Generally, NBFCs’ interest rates are higher than banks.

What should I consider when selecting an institution for opening an FD?

Factors to consider include interest rates offered, tenure options, reputation and credibility of the institution, regulatory oversight, convenience, and customer service.