Fixed Deposites

A fixed deposit is a financial instrument provided by banks and non-banking financial companies, where you can deposit money for a higher rate of interest than savings accounts. You can deposit a lump sum of money in fixed deposit for a specific period, which varies for every financier.

Features and Benefits

Invest in a Fixed Deposit to grow your savings, with high stability and safety of principal amount. As one of the safest investment options, fixed deposit enables you to take control of your investments with flexibility and offers guaranteed returns. You can easily choose a tenor between 12 months and 60 months, as per your financial needs.

Types of Fixed Deposit Schemes You Can Choose

Simple Fixed Deposit

The interest rates vary depending on the bank but generally the tenures for simple fixed deposits are anywhere between a 7 days to 10 years.

Special Fixed Deposits

These fixed deposits have a different calculation when it comes to tenures and are generally in denominations of days such as 300 days, 700 day or 1000 days.

Tax Saving Fixed Deposits

As the name suggests, these financial products help you gain benefits on taxes under Section 80C, however keep in mind that the interest that you earn from a fixed deposit is fully taxable.

Top 5 Things You Need To Know Before You Deposit

1. Go for A Fixed Deposit with a Long Tenure:

The longer your tenure for fixed deposit, the more interest the bank is going to reward you with. So, make sure that, even if the amount payable every month is small, you pay them over a long tenure. Banks that are often well-known come up with special deposit periods to help enhance their ratio of deposit by offering special returns on specific tenures. Do look out for them.

2. Choose A Bank with High Credit Ratings :

When you want to get a fixed deposit from a bank make sure the bank has high credit ratings. This will ensure the safety of your bank and a rewarding experience when it comes to dealing with a bank.

3. Look out for Additional Benefits:

A lot of banks give you the advantage of getting a loan facility on fixed deposits when you are in urgent need of cash. Some banks may even offer insurances such as Personal Accident Cover as a free product for the customers.

4. Liquidity or Premature Withdrawal of Fixed Deposit

You have to check the premature withdrawal clause of the FD as banks provide higher rates of interest generally, but the withdrawal fee may not be revealed. It is important to negotiate exit load on premature withdrawals and compromise the liquidity aspect. You can check out this clause online from the bank and then make your decision.

5.Makes Sure Your Fixed Deposit Helps Your TDS Look Good

Once you have made an FD, you will declare the income through FD in the section Income from other Sources when you fill your tax returns. Under the Form 26AS the TDS payments deducted on your FD will be listed. This helps to make sure you save a little more on your taxes by treating your FD like a regular income.

Best Fixed Deposit Interest Rates in 2020 *

Tenure (Months) Tenure (Months)
12m 18m 24m 36m 48m 60m 12m 18m 24m 36m 48m 60m
LIC Pension Fund - Scheme G - TIER II 7.30% 7.40% 7.60% 7.80% 8.00% 8.10% 7.15% 7.25% 7.45% 7.65% 7.85% 7.95% 0.25% FOR SENIOR CITIZEN RS 10000
ICICI HOME FINANCE 7.40% 7.40% 7.55% 7.55% 7.60% 7.70% 7.15% 7.15% 7.15% 7.35% 7.35% 7.45% 0.25% FOR SENIOR CITIZEN RS 10000
PNB Housing FD 7.75% 7.75% 7.75% 7.95% 7.80% 7.80% 7.45% 7.45% 7.45% 7.65% 7.50% 7.50% 0.25% EXTRA FOR SR. CITIZEN UPTO RS.1 CR RS 50000
SHRIRAM 7.80% ----- 8.32% 9.36% 9.90% 10.42% 7.53% - 7.72% 8.28% 8.37% 8.42% 0.25% FOR SENIOR CITIZEN, 0.25% EXTRA FOR RENEWALS RS 25000
BAJAJ FINANCE LTD 7.60% 7.60% 7.65% 7.70% 7.80% 7.80% 7.35% 7.35% 7.39% 7.44% 7.53% 7.53% 0.25% EXTRA FOR SR. CITIZEN OR 0.10% EXTRA FOR EXISTING CUSTOMER (15 DAYS GAP IN FIRST & SECOND DEPOSIT) & 0.10% EXTRA IN RENEWAL UPTO `5 CR RS 25000

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Sunday Closed


Hyderabad, Telangana,500016