Fixed Deposits (FDs)

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Stability Meets Guaranteed Growth

Fixed Deposits – The Power of Guaranteed Returns

Fixed Deposits are the bedrock of any conservative portfolio, offering **guaranteed returns** and **zero market risk**. We help you maximize returns by comparing top Bank FDs and high-rated Company FDs, optimizing for tax and liquidity needs.

4 Key Benefits of Fixed Deposits

🔒

Guaranteed Returns

Your return rate is fixed at the time of investment, ensuring predictability regardless of market fluctuations.

🛡️

Capital Safety

Bank FDs are insured up to ₹5 lakh by DICGC, providing the highest level of security for conservative investors.

💸

Regular Income Option

Choose non-cumulative FDs for monthly, quarterly, or yearly interest payouts, ideal for retirees.

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Loan & Liquidity

Easily get a loan or overdraft facility against your FD, offering quick access to capital when needed.

Bank vs. Company FDs: Safety and Returns

✅ Bank FDs (Highest Safety)

Insured up to ₹5 lakh by DICGC. Lower interest rates but virtually zero credit risk. Ideal for primary emergency funds.

✨ Company FDs (Higher Returns)

Offer higher interest but rely on the company's financial strength. **Always check credit ratings (CRISIL, ICRA)** before investing.

Taxation and Liquidity

Interest on FDs is fully taxable as per your income slab. While premature withdrawal is possible, it usually incurs a penalty. Tax-saving FDs offer an 80C deduction but come with a compulsory 5-year lock-in.

Who Should Invest?

  • › **Retirees** and senior citizens needing regular, predictable income.
  • › **Conservative investors** prioritizing capital safety over high growth.
  • › Those needing **short-term savings** (3 months to 2 years) for a known expenditure.

Fixed Deposits – FAQs

A Fixed Deposit (also called Term Deposit) is an investment where you deposit a lump sum of money with a bank or company for a fixed tenure at a predetermined interest rate. The invested amount earns interest throughout the tenure and is returned along with the principal at maturity.

Bank Fixed Deposit – Offered by banks, safe but with relatively lower returns.

Company Fixed Deposit – Offered by manufacturing companies, NBFCs, and financial institutions. Governed by Section 58A of the Companies Act. These may offer higher interest rates but carry higher risk compared to bank FDs.

Bank FDs – Ranges from 7 days to 10 years.

Company FDs – Usually from 6 months to 5 years.

Cumulative FD – Interest is compounded and paid at maturity along with principal.

Non-Cumulative FD – Interest is paid out monthly, quarterly, half-yearly, or yearly, as per your choice.

The minimum amount varies depending on the bank or company, usually starting from ₹1,000 to ₹10,000.

Interest earned on FD is fully taxable as per your income tax slab.

If the annual interest exceeds ₹5,000 (Company FD) or ₹40,000 (Bank FD; ₹50,000 for senior citizens), TDS (Tax Deducted at Source) will be applied.

To avoid TDS, investors can submit Form 15G (for non-senior citizens) or Form 15H (for senior citizens).

Yes, but it is called premature withdrawal.

Banks usually charge a penalty (0.5% to 1% lower interest rate).

Some company FDs may not allow premature withdrawals for a certain lock-in period.

Bank FDs – Safer, as deposits up to ₹5 lakh per bank per depositor are insured by DICGC.

Company FDs – Risk depends on the financial health of the company. Always check credit ratings (CRISIL, ICRA, CARE, etc.) before investing.

On maturity, you can choose to:

Withdraw the principal + interest to your bank account.

Renew the FD for another term (principal + interest or principal only).

Yes. Banks and companies provide loan/overdraft against FD (typically up to 75-90% of the FD value). Interest charged is usually 1-2% higher than FD interest rate.

Yes, you can open FD as:

Primary + Joint Holder (Both names on FD).

In case of maturity, instructions can be set as Either or Survivor / Jointly / Anyone or Survivor.

Conservative investors who prefer guaranteed returns.

Retirees and senior citizens looking for regular income.

People who want low-risk, stable investment options.