Various types of Fixed Deposits (FDs) cater to your diverse needs. Standard FDs offer a fixed interest rate over a specified tenure. Tax-saving FDs provide benefits under Section 80C of the Income Tax Act. Senior Citizens FDs offer preferential rates to elderly investors. Additionally, Cumulative FDs compound interest, while Non-cumulative FDs pay regular interest pay-outs. Understanding these distinct FD types could empower you to make informed financial decisions aligned with your goals and preferences.
Standard FD: Lump sum investment, flexible tenure (7 days to 10 years), interest varies with tenure. Suitable for individuals below 60
Tax-Saving FD: Lock-in of 5 years, offers tax deductions under Section 80C, no premature withdrawals
Senior Citizens FD: For individuals aged 60 and above, higher interest rates than standard FDs, favourable TDS limit of ₹50,000
NRI FDs: NRE for tax-free interest, NRO with taxable interest at 30%. Choose based on financial needs and tax situation
Recurring FDs: Monthly savings over 12 to 60 months, ideal for incremental savings with a regular income
Flexi Deposits: Linked to savings account, excess funds automatically converted to FD, balancing savings and liquidity
Corporate FDs: Higher interest rates, higher risk due to issuance by corporations. Requires thorough research
Special FDs: Offered for specific time periods, higher interest rates, attractive for maximising returns within a timeframe
Floating FDs: Interest rates change quarterly or yearly, potential to benefit from fluctuating rates. Evaluate based on market conditions