What is a Fixed Deposit?

Fixed Deposit

About Fixed Deposit

What is a Fixed Deposit?

Fixed deposit (FD) is one of the safest investment options through which people can earn relatively higher interest in comparison to a regular savings account. Interest is accumulated on the deposited amount over a fixed period of time. The interest rate depends on the type of lenders (public sector, private sector, or small finance banks). Senior citizens are usually offered higher interest rates. In the case of an emergency, you can easily liquidate your FD and get the funds.

The tenures in fixed deposit schemes are flexible. Investors can choose the tenure according to their convenience.

Once the amount has been deposited in at a specific interest rate, it remains unaffected by further changes in interest rates or market fluctuations. Thus, the returns on your deposit are assured.

With fixed deposits, there are several other benefits such as loan against FD. One can avail loans of up to 90 per cent of your deposit amount at very low interest rates. Investing in tax-saving fixed deposits will fetch tax deductions. FD also provides the option for regular income. One can get the interest sum credited as per the requirements on a monthly, quarterly, or annual basis.

Factors to consider before opening FD -

  • Compare various FD interest rates of different banks that help you earn better interest.
  • Review the credibility of the lender by examining the fixed deposit’s safety.
  • Choose a bank that offers good customer service and a hassle-free process for opening an FD.

Latest Updates on Fixed Deposit

Safe investment option: What is a fixed deposit; how does it work

2 min read Last Updated :Mar 12 2024 | 11:50 AM IST
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NSC or 5-year FD? Which is the better tax-saving investment option?

7 min read Last Updated :Mar 12 2024 | 10:17 AM IST
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Sikkim govt to create fixed deposits of Rs 10,800 in name of newborns

2 min read Last Updated :Feb 26 2024 | 7:18 PM IST
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Safe IPO investments, private jet boom: Top personal finance stories

3 min read Last Updated :Dec 01 2023 | 10:18 AM IST
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FDs, insurance, gold top retirement investments, MFs gain traction: Survey

5 min read Last Updated :Nov 09 2023 | 10:20 AM IST
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Rs 200 crore FD fraud: Role of Noida Authority officials under probe

2 min read Last Updated :Jul 27 2023 | 11:45 PM IST
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A snapshot of company fixed deposit rated offered by various companies

1 min read Last Updated :Jun 29 2023 | 6:22 PM IST
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Senior citizen saving scheme vs bank FD: What is the right strategy for you

10 min read Last Updated :Jun 15 2023 | 10:14 AM IST
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Small banks vs private/PSU banks: Where should you lock your money?

10 min read Last Updated :Jun 14 2023 | 9:36 AM IST
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Why spate of bank deposit rate hikes could be a thing of the past

5 min read Last Updated :Jun 09 2023 | 11:18 AM IST
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HNIs preferring fixed deposits over debt mutual funds, says report

2 min read Last Updated :May 11 2023 | 7:22 PM IST
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ESAF SFB hikes FD rates, offers up to 9% returns effective from today

3 min read Last Updated :Apr 14 2023 | 5:06 PM IST
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Post office saving schemes compete with bank FDs after 3 rate hikes by govt

4 min read Last Updated :Apr 09 2023 | 4:38 PM IST
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Fixed deposit interest rates to go up again? RBI hits at another hike

2 min read Last Updated :Mar 22 2023 | 2:46 PM IST
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Employee union urges Bank of Maharashtra to hike rates on term deposits

2 min read Last Updated :Jan 10 2023 | 12:58 PM IST
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Sundaram Finance to revise interest rate on term deposits from Jan 1

1 min read Last Updated :Dec 31 2022 | 4:07 PM IST
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Bank of Baroda hikes MCLR up to 30 basis effective December 12

2 min read Last Updated :Dec 09 2022 | 10:18 PM IST
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Time still not ripe for investors to bet on long-duration debt funds

4 min read Last Updated :Dec 07 2022 | 10:45 PM IST
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Bajaj Finance raises interest on FDs of up to Rs 5 crore by 25 bps

2 min read Last Updated :Nov 22 2022 | 7:20 PM IST
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Special FD rates, while attractive, lose the medium to long-term race

3 min read Last Updated :Nov 10 2022 | 7:04 PM IST
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