You should be aware of the many sorts of fixed deposits that are offered in the market before setting aside money for one.
Table of contents [Show] Standard Term Deposit | If you choose a normal or standard fixed deposit, you are committing ki your money will be with the bank for a fixed time (number of months or years), for a predetermined interest rate. Matlab, say you take a Term Deposit of ₹ 10,000 for 5 years for a certain rate of interest. After it matures (jab five years khatam ho jaayenge), you will get your ₹ 10,000 back and the interest that’s accumulated over five years. A typical fixed deposit can last anywhere from seven days to ten years. |
Tax-saving Fixed Deposit | Usually, FDs pe tax lagta hai, but there are Tax deductions available for a select group of FDs. These are called tax-saving Fixed Deposits. A tax-saving FD has a 5-year maturity duration and is tax-deductible under section 80C of the Indian Income Tax Act for principal payments up to ₹ 1,50,000 yearly. |
Special Fixed Deposit | Special Fixed Deposits are considered unique since they are often provided for a limited time. The time frame can last anywhere from 290 to 390 days. Many people prefer Special FDs as they provide a higher interest rate. |
Senior Citizen Fixed Deposit | For investors over the age of 60, banks and NBFCs (Non-Banking Financial Company) frequently provide 25 to 50 basis points (0.25% to 0.50%) more in interest on FDs than other investors. They also provide an additional tax benefit. |
Corporate Fixed Deposit | Some companies or corporate bodies also provide fixed deposits. Though they offer a higher rate of interest, corporate FDs carry a higher risk than those provided by banks and NBFCs. Agar company doob jaati hai, there is no guarantee that you will get your money from them. |
How do you decide which is the best fixed deposit for you? See what will suit your budget and match with your lifestyle. It is always better to check with a financial advisor and ask your bank for all the details. Once you have all the information with you, then select the FD that will earn you more money.
