Ignite your financial ascent with a thrilling voyage into Fixed Deposit investments! Unleash the power of your wealth journey

A fixed deposit (FD) is a financial instrument provided by banks and non-banking financial companies (NBFCs) that offers a higher interest rate than a regular savings account, where money is deposited for a fixed tenure.

When you open a fixed deposit, you deposit a lump sum of money for a predetermined period. In return, the bank or NBFC pays you interest at a fixed rate. At the end of the tenure, you receive the principal amount along with the accrued interest.

Fixed deposits offer several benefits, including guaranteed returns, higher interest rates compared to savings accounts, safety of principal, and flexible tenures.

The tenure for fixed deposits can range from a minimum of 7 days to a maximum of 10 years, depending on the bank or financial institution.

Yes, you can withdraw your fixed deposit before maturity, but this is subject to a penalty, which may involve a lower interest rate or a penalty fee. The terms vary between banks and financial institutions.

The interest rate on fixed deposits varies depending on the bank or NBFC, the tenure of the deposit, and the amount invested. Rates are generally higher for longer tenures and larger deposits.

Interest on fixed deposits is typically calculated on a quarterly or monthly compounding basis. The formula used can vary, so it’s best to check with the specific bank or financial institution.

Fixed deposits are considered a safe investment option as they are not subject to market fluctuations. Additionally, deposits in banks are insured up to a certain limit by deposit insurance agencies (such as DICGC in India).

Yes, many banks and NBFCs offer higher interest rates on fixed deposits for senior citizens, typically ranging from 0.25% to 0.75% more than the standard rates.

In cumulative fixed deposits, interest is compounded and paid at maturity along with the principal amount. In non-cumulative fixed deposits, interest is paid out at regular intervals (monthly, quarterly, half-yearly, or annually).

Yes, many banks and NBFCs offer loans against fixed deposits. Typically, you can borrow up to 90% of the FD amount at an interest rate slightly higher than the FD rate.

If you don’t withdraw your fixed deposit on maturity, most banks and NBFCs automatically renew the deposit for the same tenure at the prevailing interest rate. It’s advisable to check the terms with your bank.

Yes, the interest earned on fixed deposits is taxable. Banks deduct Tax Deducted at Source (TDS) if the interest income exceeds the prescribed limit set by tax authorities.

You can open a fixed deposit by visiting Fixed Deposit page.
Step 1: Explore and Select Ideal FD Investment Options.
Step 2: Register Your Account Easily,
Step 3: Complete KYC and Invest Securely.

Generally, you need to provide a proof of identity (like a passport, PAN card, or Aadhaar card), a proof of address, and a recent passport-sized photograph. Specific requirements may vary by bank/NBFC.