What is Fixed Deposit?
Types of Fixed Deposits- Fixed deposits are categorized in various types those are
Normal Fixed Deposits – In normal fixed deposit you can deposit money for a fixed tenure and tenure can be range from 7days to 10 years. Interest rates are high in normal fixed deposit compare to saving account.
Tax Saving Fixed Deposit – In Tax saving FD you get tax exemption on the principal amount upto 1.5 lacks in a year and lock in period can be 5 years in which you cannot withdraw the amount.in Tax saving FD you can deposit lumsum amount one time only.
Senior Citizens Fixed Deposit – This FD is available for people who are above 60 years and they get special interest rates on FD with flexible tenures.
Cumulative Fixed Deposit – In cumulative FD, interest rate is compounded every quarter or every year and paid to client at the time of maturity.
Non-Cumulative Fixed Deposit – In this FD scheme Interest is paid monthly, quarterly, half yearly or annually as per client’s choice. This is best for those looking for regular income from investment.After all the documentation investor will get his/her demat & trading accounts details.
Flexi Fixed Deposit – Flexi FD is linked to your bank account and money commute between your FD and saving account.
Who Provide service of Fixed Deposit – In india Banks, financial institution, NBFC’s and Post offices provide service of Fixed Deposit.
How to Apply for Fixed Deposit – you can apply online or offline for Fixed Deposit by visiting banks/NBFC’s/post office website for online and their branch for offline.
Requirements for Fixed Deposit – You need 1 passport size photo with self-attested PAN card copy and 1 address proof like adhaar card, voter id etc.
Benefit of Fixed Deposit
- It is safe compare to other investments
- You get flexible tenure upto 10 years
- There is no limit for maximum deposit amount
- Senior citizen gets additional interest rates.
- Return on FD is assured
- FD can be easily renewed
- There is no effect on FD rates or return of market fluctuation