Fixed Deposit are traditional investments through which people in India has been investing their savings for earning good returns. These offer better interest rates compared to Savings Account interest rates as money is committed/ fixed for longer tenure. Fixed Deposits are the simplest form of investment where you only have to decide the tenure for which you will park your money and how much interest it will offer. Fixed Deposits are assured income products. There are absolutely safe investments, so suits all age groups including senior citizens due to guaranteed returns. In case of emergency you can withdraw fully, partially or take a loan against Fixed Deposits. Some banks charge premature penalty in case you withdraw Fixed Deposit before maturity.
There are various types of Fixed Deposits.
- Most popular are the ones offered by banks, post offices also offer Fixed Deposits.
- Depending upon the amount Fixed Deposits are categorised in to (1) Retail Fixed Deposits which are less than Rs. 2 Crore & (2) Bulk Fixed Deposits which are of amount Rs. 2 Crore and above.
- There are Regular Fixed Deposits for age group less than 60 and Senior Citizen Fixed Deposits which are for 60 years and above. Some banks also offer Very Senior Citizen Fixed Deposits. Fixed Deposit rates vary for each type of Fixed Deposit, Senior Citizen FDs get better rates than regular FD. Rates also vary depending on the tenure.
- Some banks offer non-callable Fixed Deposits which cannot be withdrawn before maturity. Interest rates are little high on these compared to regular Fixed Deposits.
- NRI Fixed Deposits are specially for NRIs who park lump sum money.
Fixed deposits can be placed for tenure between 7 days to 10 years, if you withdraw before 7days no interest is paid. Nomination facility is available for these instruments. Fixed Deposits have various types of interest paying frequency such as Monthly Interest Payment, Quarterly Interest Payment, Half Yearly Interest Payment and Cumulative interest payment.
You can open your Fixed Deposits in public sector, private sector or small finance banks or post offices. Fixed Deposits can be opened irrespective of having savings or current account. All banks and post offices display the rate of interest of their Fixed Deposits in at their branches, websites etc. and give wide publicity among customers.
Check the Fixed Deposit interest rates of various banks here:
Regular Fixed Deposit Rates https://primmoney.com/regular-fd-rate/
Senior Citizen Fixed Deposit Rates https://primmoney.com/senior-citizen-fd-rates/