A complete guide on Fixed Deposit

A Fixed Deposit or FD is a kind of financial instrument that is offered by most of the banks in India. FD allows an individual to deposit a sum of money for a fixed period of time. You can make your fixed deposit account for 1 month, 6 month, 1 year or 5 years depending on your needs and requirements. You can choose a fixed deposit account if you are looking for a high interest rate from bank. Fixed deposit offers higher interest rates than other saving accounts.

Fixed Deposit

Fixed deposit is a kind of safe investment that can help an applicant to grow his money without any risk that is associated with the present financial market. Applicant can grow his money without exposing them to volatility. Most of the banks in India are offering fixed deposit facility to customers. But, the interest rate on your fixed deposit account will depend on several factors such as the tenure of the deposit and the amount that you want to deposit. Banks are offering fixed deposit tenure ranging from 7 days to 10 years. The maximum interest rate for a fixed deposit account can reach up to 9% per annum. There are several banks that can even offer you a tax saving fixed deposit. Tax saving fixed deposit is an added advantage for customers that can help them to get more tax benefits. Bank can offer you a good interest rate if you deposit a good amount of money for a long tenure.

 

Features of Fixed Deposit Account

  • The main feature of fixed deposit account is that you can earn a very high interest rate compared to the other saving accounts. An individual can earn up to 9% per annum interest rate on his surplus funds or extra money.
  • The applicant can deposit the amount only once.
  • The applicant needs to open a separate account if he wants to make another fixed deposit.
  • After opening the fixed deposit account, the depositor will get a fixed deposit receipt from the bank.
  • The depositor has to produce the fixed deposit receipt at the time of maturity.
  • After the maturity he can renew the fixed deposit account for further period.
  • The interest on fixed deposit account gets credited to the applicant’s savings account as per the traditional scheme. The credited amount will be specified by the depositor on a monthly or quarterly basis.
  • If you want to reinvest your fixed deposit account then the interest will be compounded to the principal amount on a quarterly basis.
  • As per the income tax act, 1961, the applicable tax is deducted at source from the interest on fixed deposit.

 

Types of Fixed Deposits

There are many types of FD or fixed deposit accounts available in India. Investor can choose any fixed deposit option from the wide range of investment options available based on their personal and financial needs.

 

 

  • Normal/Standard Fixed Deposits

 

Standard Fixed Deposit is one of the most common fixed deposit accounts. It is also one of the most basic and uncomplicated forms of investment. A fixed sum of money is deposited for a certain pre-determined period of time and a certain interest rate is provided on the same.

Features

  • Fixed tenure
  • Standard interest rates
  • Easy investment
  • Secure

 

  • Cumulative Fixed Deposits

 

When it comes to cumulative fixed deposits, the interest earned on this will not be available or paid to the policyholder at regular intervals. Instead, interest will be paid only upon completion of the fixed deposit tenure along with the principal amount.

Features

  • Interest paid with principal at the time of maturity
  • Not ideal for those without a regular income like pensioners etc.
  • Interest is compounded on a weekly, bi-weekly, monthly, quarterly, half-yearly or yearly basis
  • This leads to higher gains, making it a more profitable form of investment

 

 

  • Special Fixed Deposits

 

These types of fixed deposits come with certain special benefits or perks when compared to the ordinary fixed investment plan. They usually offer higher rates of interest. One can also generally take a loan on these types of fixed deposits.

Features

  • Higher rate of interest
  • Special offers
  • Additional benefits

 

  • Tax Saver Fixed Deposits

 

These types of fixed deposit accounts are usually for a longer tenure that ranges between 3 to 5 years, or more. Therefore, they come with a lock-in period and one cannot break these deposits or withdraw them prematurely, unless in the event of death of the account holder. The main advantage of these deposits is that one can claim tax exemption under Section 80C of the Income Tax Act.

Features

  • Cannot be broken until completion of tenure
  • The interest gained on these deposits are taxable

 

 

  • Flexi Fixed Deposits

 

A flexi fixed deposit is a type of fixed deposit account where the savings account is linked with the term deposit.

Features

  • Provides flexibility
  • Convenient
  • Best of both worlds

 

 

  • Non-Cumulative Fixed Deposits

 

In the case of non-cumulative fixed deposit, the bank pays the account holder the interest earned on the principal amount at regular frequencies.

Features

  • Good option for pensioners
  • Extra income
  • Account holder can choose at what interval dividend should be paid
  • Usually one tends to earn lesser on the whole in this scheme when compared to cumulative fixed deposit scheme

 


Fixed Deposit interest rates

Bank Fixed Deposits are a great investment option for every individual in India as it comes with a huge number of benefits. Applicants can get high interest rates on term deposit as many banks are offering high interest rate on term deposits that can guarantee a fixed interest income. In a fixed deposit account, an applicant can invest a certain amount of money for a fixed tenure of time to earn a particular rate of interest. The interest rate on fixed deposit is generally higher than other saving accounts. There are many banks that are offering competitive rate of interest on term deposits. The interest rate usually ranges from 5% to 7.50% for individuals. Interest rates can range from 5.50% to 8% for senior citizens.

The interest rates for

A Fixed Deposit or FD is a kind of financial instrument that is offered by most of the banks in India. FD allows an individual to deposit a sum of money for a fixed period of time. You can make your fixed deposit account for 1 month, 6 month, 1 year or 5 years depending on your needs and requirements. You can choose a fixed deposit account if you are looking for a high interest rate from bank. Fixed deposit offers higher interest rates than other saving accounts.

 

Fixed Deposit

Fixed deposit is a kind of safe investment that can help an applicant to grow his money without any risk that is associated with the present financial market. Applicant can grow his money without exposing them to volatility. Most of the banks in India are offering fixed deposit facility to customers. But, the interest rate on your fixed deposit account will depend on several factors such as the tenure of the deposit and the amount that you want to deposit. Banks are offering fixed deposit tenure ranging from 7 days to 10 years. The maximum interest rate for a fixed deposit account can reach up to 9% per annum. There are several banks that can even offer you a tax saving fixed deposit. Tax saving fixed deposit is an added advantage for customers that can help them to get more tax benefits. Bank can offer you a good interest rate if you deposit a good amount of money for a long tenure.

 

Features of Fixed Deposit Account

  • The main feature of fixed deposit account is that you can earn a very high interest rate compared to the other saving accounts. An individual can earn up to 9% per annum interest rate on his surplus funds or extra money.
  • The applicant can deposit the amount only once.
  • The applicant needs to open a separate account if he wants to make another fixed deposit.
  • After opening the fixed deposit account, the depositor will get a fixed deposit receipt from the bank.
  • The depositor has to produce the fixed deposit receipt at the time of maturity.
  • After the maturity he can renew the fixed deposit account for further period.
  • The interest on fixed deposit account gets credited to the applicant’s savings account as per the traditional scheme. The credited amount will be specified by the depositor on a monthly or quarterly basis.
  • If you want to reinvest your fixed deposit account then the interest will be compounded to the principal amount on a quarterly basis.
  • As per the income tax act, 1961, the applicable tax is deducted at source from the interest on fixed deposit.

 

Types of Fixed Deposits

There are many types of FD or fixed deposit accounts available in India. Investor can choose any fixed deposit option from the wide range of investment options available based on their personal and financial needs.

 

 

  • Normal/Standard Fixed Deposits

 

Standard Fixed Deposit is one of the most common fixed deposit accounts. It is also one of the most basic and uncomplicated forms of investment. A fixed sum of money is deposited for a certain pre-determined period of time and a certain interest rate is provided on the same.

Features

  • Fixed tenure
  • Standard interest rates
  • Easy investment
  • Secure

 

  • Cumulative Fixed Deposits

 

When it comes to cumulative fixed deposits, the interest earned on this will not be available or paid to the policyholder at regular intervals. Instead, interest will be paid only upon completion of the fixed deposit tenure along with the principal amount.

Features

  • Interest paid with principal at the time of maturity
  • Not ideal for those without a regular income like pensioners etc.
  • Interest is compounded on a weekly, bi-weekly, monthly, quarterly, half-yearly or yearly basis
  • This leads to higher gains, making it a more profitable form of investment

 

 

  • Special Fixed Deposits

 

These types of fixed deposits come with certain special benefits or perks when compared to the ordinary fixed investment plan. They usually offer higher rates of interest. One can also generally take a loan on these types of fixed deposits.

Features

  • Higher rate of interest
  • Special offers
  • Additional benefits

 

  • Tax Saver Fixed Deposits

 

These types of fixed deposit accounts are usually for a longer tenure that ranges between 3 to 5 years, or more. Therefore, they come with a lock-in period and one cannot break these deposits or withdraw them prematurely, unless in the event of death of the account holder. The main advantage of these deposits is that one can claim tax exemption under Section 80C of the Income Tax Act.

Features

  • Cannot be broken until completion of tenure
  • The interest gained on these deposits are taxable

 

 

  • Flexi Fixed Deposits

 

A flexi fixed deposit is a type of fixed deposit account where the savings account is linked with the term deposit.

Features

  • Provides flexibility
  • Convenient
  • Best of both worlds

 

 

  • Non-Cumulative Fixed Deposits

 

In the case of non-cumulative fixed deposit, the bank pays the account holder the interest earned on the principal amount at regular frequencies.

Features

  • Good option for pensioners
  • Extra income
  • Account holder can choose at what interval dividend should be paid
  • Usually one tends to earn lesser on the whole in this scheme when compared to cumulative fixed deposit scheme

 


Fixed Deposit interest rates

Bank Fixed Deposits are a great investment option for every individual in India as it comes with a huge number of benefits. Applicants can get high interest rates on term deposit as many banks are offering high interest rate on term deposits that can guarantee a fixed interest income. In a fixed deposit account, an applicant can invest a certain amount of money for a fixed tenure of time to earn a particular rate of interest. The interest rate on fixed deposit is generally higher than other saving accounts. There are many banks that are offering competitive rate of interest on term deposits. The interest rate usually ranges from 5% to 7.50% for individuals. Interest rates can range from 5.50% to 8% for senior citizens.

The interest rates for fixed deposit from popular banks are listed below.

Fixed Deposit Interest Rates
Bank Tenure (Min-Max) Regular Interest Rates
IDFC Bank 366 days 7.50%
Lakshmi Vilas Bank 1 year to 5 years 7.30% to 7.35%
DCB Bank 1 year to 5 years 7% to 7.25%
RBL Bank 1 year to 5 years 7.15% to 7.25%
Deutsche Bank 1 year to 5 years 7.00% to 8.00%
Bandhan Bank 1 year to 5 years 7.00% to 7.10%
Karur Vysya Bank 1 year to 5 years 6.75% to 7.00%
Tamil Mercantile Bank 1 year to 5 years 6.90% to 7%
Karnataka Bank 1 year to 5 years 6.50% to 7.25%
HDFC Bank 1 year to 5 years 6.25% to 7.00%
IndusInd Bank 1 year to 5 years 6.50% to 7.00%
Oriental Bank of Commerce 1 year to less than 2 years 6.60%
Yes Bank 1 year to 10 years 6.75% to 6.90%
Union Bank 10 months to 10 years 6.50% to 6.75%
Axis Bank 1 year to 10 years 6.25% to 6.85%
ICICI Bank 1 year to 10 years 6.50% to 6.75%
IDBI Bank 1 year to 5 years 6.50% to 6.75%
Kotak Bank 1 year to 5 years 6.50% to 7.00%
Vijaya Bank 1 year to 5 years 6.50% to 6.75%
Punjab National Bank (PNB) 1 year to 10 years 6.25% to 6.75%
Bank of Baroda (BOB) 1 year to 10 years 6.60% to 6.70%
State Bank of India (SBI) 1 year to 10 years 6.40% to 6.75%

 

Current Fixed deposit rates from best companies

There are many companies which can offer you a good fixed deposit interest rate. The companies are listed below:

Fixed Deposit Interest Rates for best companies
Company Tenure (Min-Max) Regular Interest Rates
Shriram Transport Finance UNNATI Scheme (yearly, non-cumulative) 3 to 5 years 8.00% to 8.25%
KTDFC 1 year to 5 years 8.00% to 8.25%
DHFL Aashray Deposit Plus (cumulative) 1 year to 5 years 7.70% to 8.05%
Bajaj Finance Ltd 1 year to 5 years 7.50% to 7.85%
Mahindra Finance (Dhanvruddhi cumulative scheme) 33 months 8.30%
Post Office Time Deposit 5 years 7.40%
LIC Housing Finance Ltd 1 year to 5 years 7.30% to 7.45%
PNB Housing Finance 1 year to 5 years 7.45%

 

Current Fixed Deposit Rates for Senior Citizens in India

Fixed deposits are a good investment option for senior citizens. Senior citizens have limited sources of income and people are mostly risk averse in that age group. People who are aged 60 years or more are eligible for a higher rate of interest. Most banks in India tend to offer better interest rates for senior citizens.

  • IDFC Bank deposits can fetch senior citizen investors the highest FD rate of 8.00% p.a.
  • RBL Bank pays interest rate for senior citizen in the range of 7.15% p.a. to 7.85% p.a.

 

The best interest rates of fixed deposit account for senior citizens are mentioned below:

FD Rates for Senior Citizens
Bank Tenure (Min-Max) Senior Citizen FD Rates
IDFC Bank 366 days 8%
RBL Bank 1 year to 5 years 7.15% to 7.85%
Yes Bank 3 months to less than 6 months 7.40%
ICICI Bank 390 days to 2 years 7.25%
HDFC Bank 1 year 17 days to 5 years 7.50%
PNB More than 1 year to 3 years 7.25%
BOB 366 days to 400 days 7.05%
SBI 3 years to less than 5 years 7.20%

 

Fixed deposit calculator:

Fixed deposit calculator can help you to calculate the interest amount that you can get from your bank for a fixed deposit account for a fixed tenure of time. There are many banks that are offering fixed deposit facility for customers. But, before investing in a fixed deposit account you have to make sure that you will get the maximum interest rate from banks. You can calculate your interest amount using the bank fixed deposit calculator online. It is very easy to use. And the main benefit of a bank fixed deposit calculator is that the service is totally free. You can apply for a fixed deposit for a fixed period of time such as 7 days, one month, 6 months, and 1 year to 5 years as per your need. You will get the maximum interest rate available. But before going for an investment you should always compare the rates because different banks have different interest rates on fixed deposit.

To use a fixed deposit calculator user needs to input certain fields such as:

  • The Deposit amount – the amount you want to invest in a particular deposit scheme
  • Deposit tenure – the period for which you want to invest the amount
  • Deposit interest rate – the rate of interest that is offered by the chosen bank or institution

After entering all these details you just need to click on the calculate button. You will get the maturity amount instantly on your screen.

 

Fixed deposit is a very good investment option for those who want to save their extra money or invest the money for a fixed tenure of time.  Fixed deposit gives the maximum interest on fixed deposit rate compared to other saving options. An individual should always compare the interest rates from different banks before going for a fixed deposit. There are many online fixed deposit calculators available using which an applicant can calculate his maturity return.

 from popular banks are listed below.

Fixed Deposit Interest Rates
Bank Tenure (Min-Max) Regular Interest Rates
IDFC Bank 366 days 7.50%
Lakshmi Vilas Bank 1 year to 5 years 7.30% to 7.35%
DCB Bank 1 year to 5 years 7% to 7.25%
RBL Bank 1 year to 5 years 7.15% to 7.25%
Deutsche Bank 1 year to 5 years 7.00% to 8.00%
Bandhan Bank 1 year to 5 years 7.00% to 7.10%
Karur Vysya Bank 1 year to 5 years 6.75% to 7.00%
Tamil Mercantile Bank 1 year to 5 years 6.90% to 7%
Karnataka Bank 1 year to 5 years 6.50% to 7.25%
HDFC Bank 1 year to 5 years 6.25% to 7.00%
IndusInd Bank 1 year to 5 years 6.50% to 7.00%
Oriental Bank of Commerce 1 year to less than 2 years 6.60%
Yes Bank 1 year to 10 years 6.75% to 6.90%
Union Bank 10 months to 10 years 6.50% to 6.75%
Axis Bank 1 year to 10 years 6.25% to 6.85%
ICICI Bank 1 year to 10 years 6.50% to 6.75%
IDBI Bank 1 year to 5 years 6.50% to 6.75%
Kotak Bank 1 year to 5 years 6.50% to 7.00%
Vijaya Bank 1 year to 5 years 6.50% to 6.75%
Punjab National Bank (PNB) 1 year to 10 years 6.25% to 6.75%
Bank of Baroda (BOB) 1 year to 10 years 6.60% to 6.70%
State Bank of India (SBI) 1 year to 10 years 6.40% to 6.75%

 

Current Fixed deposit rates from best companies

There are many companies which can offer you a good fixed deposit interest rate. The companies are listed below:

Fixed Deposit Interest Rates for best companies
Company Tenure (Min-Max) Regular Interest Rates
Shriram Transport Finance UNNATI Scheme (yearly, non-cumulative) 3 to 5 years 8.00% to 8.25%
KTDFC 1 year to 5 years 8.00% to 8.25%
DHFL Aashray Deposit Plus (cumulative) 1 year to 5 years 7.70% to 8.05%
Bajaj Finance Ltd 1 year to 5 years 7.50% to 7.85%
Mahindra Finance (Dhanvruddhi cumulative scheme) 33 months 8.30%
Post Office Time Deposit 5 years 7.40%
LIC Housing Finance Ltd 1 year to 5 years 7.30% to 7.45%
PNB Housing Finance 1 year to 5 years 7.45%

 

Current Fixed Deposit Rates for Senior Citizens in India

Fixed deposits are a good investment option for senior citizens. Senior citizens have limited sources of income and people are mostly risk averse in that age group. People who are aged 60 years or more are eligible for a higher rate of interest. Most banks in India tend to offer better interest rates for senior citizens.

  • IDFC Bank deposits can fetch senior citizen investors the highest FD rate of 8.00% p.a.
  • RBL Bank pays interest rate for senior citizen in the range of 7.15% p.a. to 7.85% p.a.

 

The best interest rates of fixed deposit account for senior citizens are mentioned below:

FD Rates for Senior Citizens
Bank Tenure (Min-Max) Senior Citizen FD Rates
IDFC Bank 366 days 8%
RBL Bank 1 year to 5 years 7.15% to 7.85%
Yes Bank 3 months to less than 6 months 7.40%
ICICI Bank 390 days to 2 years 7.25%
HDFC Bank 1 year 17 days to 5 years 7.50%
PNB More than 1 year to 3 years 7.25%
BOB 366 days to 400 days 7.05%
SBI 3 years to less than 5 years 7.20%

 

Fixed deposit calculator:

Fixed deposit calculator can help you to calculate the interest amount that you can get from your bank for a fixed deposit account for a fixed tenure of time. There are many banks that are offering fixed deposit facility for customers. But, before investing in a fixed deposit account you have to make sure that you will get the maximum interest rate from banks. You can calculate your interest amount using the bank fixed deposit calculator online. It is very easy to use. And the main benefit of a bank fixed deposit calculator is that the service is totally free. You can apply for a fixed deposit for a fixed period of time such as 7 days, one month, 6 months, and 1 year to 5 years as per your need. You will get the maximum interest rate available. But before going for an investment you should always compare the rates because different banks have different interest rates on fixed deposit.

To use a fixed deposit calculator user needs to input certain fields such as:

  • The Deposit amount – the amount you want to invest in a particular deposit scheme
  • Deposit tenure – the period for which you want to invest the amount
  • Deposit interest rate the rate of interest that is offered by the chosen bank or institution

After entering all these details you just need to click on the calculate button. You will get the maturity amount instantly on your screen.

 

Fixed deposit is a very good investment option for those who want to save their extra money or invest the money for a fixed tenure of time.  Fixed deposit gives the maximum interest on fixed deposit rate compared to other saving options. An individual should always compare the interest rates from different banks before going for a fixed deposit. There are many online fixed deposit calculators available using which an applicant can calculate his maturity return.