Fixed Deposit
- Services
- Fixed Deposit
Fixed Deposits
A Fixed Deposit (FD) is a financial product offered by banks and financial institutions that provides a guaranteed return on a lump sum deposit over a fixed period. In an FD, you deposit a certain amount of money for a predetermined term—ranging from a few months to several years. In return, the institution pays you interest on the deposited amount, usually at a higher rate than a regular savings account. At the end of the term, you receive the principal amount plus the interest earned. FDs are considered a low-risk investment due to their fixed interest rates and the security of the principal.
Fixed Deposit Benefits
Guaranteed Returns
Fixed Deposits offer a guaranteed return on your investment, with interest rates locked in for the duration of the deposit period.
Safety and Security
FDs are generally considered low-risk investments. In many countries, they are insured up to a certain amount by government agencies, providing additional security for your principal.
Easy to Manage
Opening and managing an FD is straightforward, with minimal paperwork and no need for active monitoring.
Types of Fixed Deposit
Fixed Deposits (FDs) come in various types to cater to different financial needs and preferences. Here are some common types of Fixed Deposits:
- Cumulative Fixed Deposit In this FD, interest is compounded and paid out at the time of maturity along with the principal amount.
- Non-Cumulative Fixed Deposit Interest is paid out periodically (monthly, quarterly, half-yearly, or annually) instead of being compounded.
Key Features
Fixed Tenure
FDs have a specific lock-in period, which can range from a few months to several years, depending on the investor's choice.
Fixed Interest Rate
The interest rate is locked in at the time of deposit and remains constant throughout the tenure, providing predictable returns.
Guaranteed Returns
FDs offer a guaranteed return on investment, as the interest rate does not fluctuate with market conditions.
Premature Withdrawal
Although FDs have a fixed tenure, they often allow for premature withdrawal, subject to a penalty or reduced interest rate.
Flexible Investment
FDs can be opened with varying amounts, allowing both small and large investors to benefit from the fixed interest rates.
Automatic Renewal
Many FDs offer the option for automatic renewal upon maturity, making it convenient for investors to reinvest their money without manual intervention.
FD Documents Required
To open a Fixed Deposit (FD) account, you typically need to submit several documents for identity verification, address proof, and other formalities. Here’s a list of common documents required:
Identity Proof
Address Proof
PAN Card
Photographs
Bank Account Details
Proof of Age (for Senior Citizens)
FD Application Form
Nomination Form
KYC Compliance
NRI-specific Documents NRE FDs
ANY QUESTIONS?
Frequent Asked Questions
REQUEST A CALL
We call you back
TALK TO A SPECIALIST
Let's Talk Business
4,Shankar Vihar,Vikas Marg, Nirman vihar,Delhi - 110092