Fixed Deposit Options

A fixed deposit (FD) is a popular and safe investment option in India. You invest a lump sum of money at an agreed interest rate and receive the amount along with interest upon maturity. The interest rates are fixed, higher than a regular savings account, and the investment is protected from market fluctuations.

Yes, FDs are one of the safest investment options. Unlike market-led investments where returns fluctuate, the returns on an FD are fixed at the time of investment. Even if FD interest rates change over time, your FD will grow at the rate you initially booked.

The Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly-owned subsidiary of the Reserve Bank of India (RBI). It insures bank deposits, including savings, current, recurring, and fixed deposits, up to Rs. 5 lakh per account holder per bank. This insurance does not cover FDs with NBFCs.

No, fixed deposits are offered by banks, NBFCs, and the India Post Office. FDs with NBFCs, known as Corporate FDs, often offer higher interest rates compared to banks.

A Non-Banking Financial Corporation (NBFC) operates as a financial institution without a full banking license, regulated by the Ministry of Corporate Affairs and the Reserve Bank of India. NBFCs offer services like savings, investment plans, lending schemes, insurance, and fixed deposits.

You can start investing in fixed deposits with a minimum amount as low as INR 5000. The maximum amount varies based on the specific FD scheme you choose.

No, it is not mandatory to add a nominee, but it is recommended.

Yes, but you must provide the details of a guardian.

You can add any individual as a nominee, including family members, relatives, friends, or any trusted person.

Yes, you can add or change a nominee later, but this service is currently available only with some partner banks. You will see the “Add Nominee” option on the dashboard once your FD is successfully booked.

FD advice is a computer-generated statement provided by the bank as proof of ownership or investment when you open a fixed deposit.

Currently, we do not offer a solution to avoid TDS deduction. Some banks allow the filing of forms 15G/15H, but we do not have this functionality. TDS is deducted only if the total interest from all sources with the bank exceeds Rs 40,000 for normal citizens and Rs 50,000 for senior citizens.

Interest earnings from your fixed deposit are taxed according to your tax slab. For example, if you are in the 20% tax bracket and you earned Rs 6,000 interest from a 1-year FD of Rs 1 lakh at 6%, you will pay 20% of Rs 6,000, which is Rs 1,200, as tax.