Fixed deposits offer assured returns over a specific tenure, regardless of market fluctuations. The interest is compounded and can be received periodically or at maturity. It is a low-risk product suitable for short-term and long-term financial goals like emergency funds, retirement savings, or future expenses.
Types of Fixed Deposits
- Standard Fixed Deposit: A regular FD with a fixed interest rate and tenure. Suitable for anyone seeking stable returns.
- Tax-Saving Fixed Deposit: Comes with a lock-in period (usually 5 years) and offers tax benefits under applicable sections of income tax law.
- Cumulative Fixed Deposit: Interest is compounded and paid at maturity, offering higher returns for long-term investors.
- Non-Cumulative Fixed Deposit: Interest is paid out monthly, quarterly, or annually—ideal for those looking for regular income.
- Senior Citizen Fixed Deposit: Special FDs for individuals above a certain age, offering higher interest rates.
Key Features:
- Guaranteed Returns: Fixed interest rate ensures predictable earnings throughout the tenure.
- Flexible Tenure Options: Choose a duration ranging from a few months to several years.
- Premature Withdrawal Facility: Withdraw funds before maturity, subject to applicable terms and conditions.
- Loan Against FD: Avail loans without breaking the FD, ensuring liquidity when needed.
- Nomination Facility: Allows you to nominate a beneficiary to receive the maturity amount.
Fixed deposits are a trusted savings tool that balances safety and returns. Whether you're planning for the short term or long haul, an FD can provide a steady financial foundation.