Indianmoney Facebook Indianmoney twitter Indianmoney LinkedIn Indianmoney Google Plus Indianmoney Youtube Indianmoney Instagram Indianmoney Medium
 
 

" Secure your money with a
fixed deposit and watch it grow. "

Fixed Deposits

Safety....Safety...Safety... your money needs to be safe. The first thing you look for in an investment. "Safe". One of the safest investments around "Fixed Deposit".

What is a fixed deposit?

You deposit your money with a bank for a fixed time period. The bank pays you interest on the money you deposit with them. You agree not to withdraw money from the fixed deposit for the time period, you make the deposit. In case of an emergency (you need money in a hurry), you can break your fixed deposit (exit prematurely from the fixed deposit), by paying a penalty. The penalty is as follows: Interest rate which is applicable for the time period of the fixed deposit - 1%.

In a fixed deposit, interest is paid to you on maturity (end of the term period of the fixed deposit).The interest on the fixed deposit and the time period is fixed and this means you know the amount you will get on maturity of the fixed deposit, at the time of making the fixed deposit itself.

Why invest in Fixed Deposits
Your Investment is Safe

Your Investment is Safe

The money you invest is safe, and the interest you earn is guaranteed. You get an assured return on your investment.

The Savings Habit

The Savings Habit

Investing in a fixed deposit encourages you to save your money for difficult times. It inculcates the saving habit in you.

Helps you get a Loan

Helps you get a Loan

You can pledge your fixed deposit, as collateral for a loan. You also avail the loan at a lower interest rate.

Tax Benefits

Tax Benefits

You get a deduction on your taxable salary, if you invest in a 5 year tax saver fixed deposit. A special product, just to save tax.

Eligibility for Fixed Deposits

If you are a resident of India (Minor or even a HUF), you can invest in a fixed deposit in India.

Types of Fixed Deposits

The regular fixed deposit

You deposit your money with a bank for a fixed time period called tenure of the fixed deposit. You get a higher interest on the money which you deposit in your fixed deposit, than in a savings bank account. On maturity of your fixed deposit, you are paid back your principal with interest.

You are not supposed to touch the money in the fixed deposit for the time you make the deposit. If you are in urgent need of money, you can break your fixed deposit (Withdraw money from your fixed deposit).

You have a penalty of 0.5-1% lower interest on your fixed deposit than promised if you do so.

The flexi fixed deposit

In a flexi fixed deposit, your fixed deposit is linked to a savings bank account. Your money moves between the fixed deposit and your savings bank account.

The flexi fixed deposit is also called the sweep in - sweep out fixed deposit.

The 5 year tax saver fixed deposit

The 5 year tax saver fixed deposit is unique from other fixed deposits. You enjoy a deduction of INR 1.5 Lakhs a year under Section 80 C of the income tax act, if you deposit your money in a 5 year tax saver fixed deposit.

Not all fixed deposits enjoy the Section 80 C benefits. You have to invest your money in a tax saver 5 year fixed deposit to avail this tax saving benefit.

How to Apply

You need to deposit a minimum amount of INR 10,000. You don't need to have a savings bank account. If you have one, it does have some benefits.
You require proof of identity and address: passport/ driving license/ voter's identity card/ PAN card/ ration card/ recent utility bills/ credit card bill. This is necessary for the KYC (Know Your Customer), procedure. You might require a letter of introduction to open a fixed deposit.

Related Articles

24 April 2018, Tuesday

Bank Could Soon Charge You For Everything

  Banks are in a lot of trouble. Non-performing assets are rising. Businessmen Nirav Modi and Vijay Mallya have defrauded banks of crores of rupees and have escaped abroad. Now, the tax department has dropped a bomb on banks. It has asked leading banks like SBI, HDFC Bank, ICICI Bank, Axis B...

10 April 2018, Tuesday

How To Apply For Duplicate Voter ID Card?

  The Voter ID Card also called Election Card is a photo identity card, issued by the Election Commission of India. An Indian citizen above the age of 18 can apply for a Voter ID Card. The Voter ID Card is not just an identity proof. It is a necessary identity while casting votes in India&rs...

07 April 2018, Saturday

How To Avoid TDS On Interest Income?

  This is a ritual you do every year. You go to the bank and invest your hard earned money, in a fixed deposit. Banks currently offer an interest of 6.5-7% a year on FDs. Your bank has to compulsorily deduct TDS on interest income on FD, if it is more than Rs 10,000 a year. Even if your i...

Most Read Articles

18 July 2012, Wednesday

How to Make Claim on a Life Insurance Policy?

Formalities for a health insurance claim You can make a claim under a Health insurance policy in two ways: On a Cashless basis and A Reimbursement Claim On a Cashless basis: For a claim on cashless basis, your treatment must be only at a network hospital of the Third Party...

14 March 2014, Friday

ELSS - Utilizing the power of compounding

As the name suggests ELSS invests the whole corpus in equities. Proportions as high as 80-90% of equities are found in an ELSS Fund. It is a special kind of mutual fund that qualifies for tax benefits. Basically Equity Linked Savings Scheme is a mutual fund with a lock in period of three years and...

07 January 2014, Tuesday

Why one must never neglect estate planning

One of the most common reason for family feuds in India as in the rest of the World is faulty estate planning. Estate planning is a neglected topic in India mainly because of the emotions attached to it. A common reason people neglect to make a will or indulge in estate planning in their younger yea...

Get It now!

How about our new look!

 
Great!
Mm.. Ok
Bad