Fixed deposit (FD)
Fixed deposit (FD)
Fixed deposit (FD) is a type of savings account that pays a fixed rate of interest for a specified period of time. It is a safe and secure investment option for those looking to save and grow their money. Fixed deposits are a popular investment option in India due to their stability and the guaranteed returns. They are suitable for individuals looking for a low-risk investment option and for those seeking to park their funds for a short or medium-term.
Benefits and Features
Higher Interest Rates
Flexibility in Tenure/Maturity
Easy Liquidation
Premature Withdrawals without Restrictions
Non-cumulative and Cumulative Interest Pay-outs
ICRA and CRISIL-rated
Loan against your Fixed Deposit
No TDS if interest is up to Rs. 5000 in a single financial year
The option of Online and Offline mode of FD
Fixed Deposit Rates Comparison
Company | Tenure (Months) | Interest Rate (%) |
---|---|---|
Shriram Transport Finance | 12 | 7.39 |
Shriram Transport Finance | 24 | 7.63 |
Shriram Transport Finance | 36 | 8.09 |
Bajaj Finance | 12 | 7.40 |
Bajaj Finance | 24 | 7.75 |
Bajaj Finance | 36 | 8.35 |
1. What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is a financial instrument where you deposit money with a bank for a specific period and earn a fixed interest rate.
2. How is interest calculated on an FD?
Interest is calculated based on the principal amount, tenure, and the interest rate offered by the bank.
3. What is the minimum tenure for an FD?
FD tenure typically starts from 7 days and can go up to 10 years.
4. Can I withdraw my FD before maturity?
Yes, but premature withdrawal may result in a penalty and a lower interest rate.
5. Is FD interest taxable?
Yes, FD interest is taxable as per the income tax slab applicable to the investor.
6. Can I get a loan against my FD?
Yes, most banks offer loans up to 90% of the FD amount.
7. What happens if I don't withdraw my FD after maturity?
Banks usually renew the FD for the same period at the prevailing interest rate.
8. Are FD rates different for senior citizens?
Yes, senior citizens often get higher interest rates compared to regular investors.
9. Can I open an FD online?
Yes, most banks allow online FD booking through their website or mobile apps.
10. Which banks offer the best FD rates?
FD rates vary across banks. It's best to compare rates on financial websites or bank portals.