• Choose Your Bank

  Select a bank offering FD services with competitive interest rates and terms suitable for your financial needs.

• Application Process

  Visit the bank branch or use their online banking platform to initiate the FD application.

• Fill Out Form

  Complete the FD application form, providing details such as deposit amount, tenure (typically ranging from months to years), and preferred interest payout frequency (monthly, quarterly, annually, or at maturity).

• Submit Documentation

  Submit required documents including identity proof, address proof, and PAN card for KYC compliance.

• Confirmation

  : Upon approval, your FD is activated, and the deposited amount starts accruing interest until maturity, when both principal and interest are paid out.

• Types of Companies offering Fixed Deposits
• 1. Non-Banking Financial Companies (NBFCs)

  NBFCs are financial institutions that provide banking services like loans, credit facilities, and fixed deposits but do not hold a banking license. They offer FDs with competitive interest rates and varying tenure options. NBFCs are regulated by the Reserve Bank of India (RBI) and must adhere to certain regulatory guidelines.

• 2. Corporate Entities (Public and Private Companies)

  Public and private companies also offer fixed deposits to raise capital from investors. These companies include a wide range of industries such as manufacturing, infrastructure, and services. Corporate FDs may offer higher interest rates compared to bank FDs but typically involve higher risk. They are regulated by the Companies Act and governed by the Ministry of Corporate Affairs (MCA).

Investors should carefully evaluate the credit rating, financial stability, and regulatory compliance of companies offering FDs to make informed investment decisions.

• Features and Benefits

  Fixed deposits (FDs) are popular investment options known for their stability and predictable returns:

• Guaranteed Returns

  FDs offer assured returns at fixed interest rates, providing predictability in income.

• Various Tenure Options

  Investors can choose FD tenures ranging from a few months to several years, aligning with their financial goals.

• Flexible Interest Payment Frequencies

  Interest can be paid out periodically (monthly, quarterly, annually) or compounded and paid at maturity.

• Safety and Security

  FDs are considered low-risk investments as they are typically insured up to a certain amount under deposit insurance schemes..

• Ease of Investment

  Opening an FD is straightforward, requiring minimal documentation, and can be done online or at a bank branch.

• Liquidity Options

  While FDs are generally less liquid than savings accounts, premature withdrawals and loan facilities against FDs offer liquidity when needed..

• Tax Benefits

  Certain FDs offer tax benefits under Section 80C of the Income Tax Act, making them attractive for tax-saving purposes

Fixed deposits are suitable for investors seeking stable returns and capital preservation, making them a cornerstone of conservative investment portfolios.