![\"\"](\"https:\/\/groright.co.in\/wp-content\/uploads\/2020\/06\/fixed-deposit.jpg\")
\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\tFixed Deposit<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tA fixed deposit refers to an investment scheme that banks and non-banking financing companies provide. FDs offer greater returns on the principal invested when compared to the returns generated from a regular savings account.<\/p>
Fixed deposits have a fixed tenure, hence the name. Depending on a consumer\u2019s investment portfolio, the FD investment period can either be short-term or long-term. The interest rates on fixed deposits vary from one company or bank to another.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tStart Investing in FDs<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\tOur Partners<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\t![\"\"](\"https:\/\/groright.co.in\/wp-content\/uploads\/2020\/06\/Bazaz_Allianze-150x150.png\")
\n\t\t\t<\/div><\/figure>\n\t\t\t\n\t\t\t\t![\"\"](\"https:\/\/groright.co.in\/wp-content\/uploads\/2020\/07\/pnb-housing-150x150.png\")
\n\t\t\t<\/div><\/figure>\n\t\t\t\n\t\t\t\t![\"\"](\"https:\/\/groright.co.in\/wp-content\/uploads\/2020\/06\/hdfc-life-150x150.png\")
\n\t\t\t<\/div><\/figure>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\tTypes of FD's<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tThere are several fixed deposit types that investors need to know about before investing. Without such knowledge, you may end up picking up plans not suitable to your investment objectives. Listed below are some of the common options open to prospective investors.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCorporate fixed deposits<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tThese are fixed deposit schemes that are held by companies, other than banks. Also known as company FDs, investing in such instruments, may, in some cases, lead to higher returns.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tStandard fixed deposits<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tStandard plans are basic investment schemes where you invest a fixed amount with a financial institution. After the fixed maturity period expires, you are eligible to receive the principal amount, along with the interest earnings from the scheme.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tSenior citizen fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIndividuals aged over 60 years are also eligible to invest in fixed deposit instruments. However, most plans geared to this age group offer flexible tenure options. Additionally, senior citizen investors are eligible for higher interest rates on their investments compared to the standard schemes.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tTax-saving fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIf the primary goal of an investment is to save taxes, investors can take advantage of tax-saving FDs. However, the maximum deposit for such plans is limited to Rs. 1.5 Lakh per year. The lock-in period for this type of FD is 5 years.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCumulative fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIn these fixed deposit schemes, the interest is compounded quarterly, half-yearly, or yearly. However, the total interest earnings are paid at the time of maturity. Opting for this kind of FD allows you to build your corpus considerably.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tNon-cumulative fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tInterest earnings on fixed deposits are paid out monthly, quarterly, or half-yearly. This option is best for investors looking for a regular source of income. Hence, pensioners benefit prominently from such plans.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tFlexi fixed deposit plans<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIn this case, the deposit moves between a savings account and an\u00a0FD account. Therefore, to initiate an investment using Flexi FDs, investors need to connect the fixed deposit account with their savings account. Investors can enjoy high-interest rates on their deposits along with liquidity with this category of FD plans.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tNRO fixed deposit account<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tNon-resident Indians can deposit their earnings generated from India in an NRO FD account. The interest earned from these FD accounts can be repatriated entirely by NRO account holders, and the principal amount can only be repatriated up to a certain limit.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tNRE fixed deposit account<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tNRIs can remit their income generated abroad and invest in an NRE fixed deposit account. Both the interest and principal are repatriable in this case.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tWho Should Invest in Fixed Deposit?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFixed deposits are perfect investment instruments for inexperienced investors. Further, risk-averse individuals can benefit greatly from such schemes. Since FDs offer assured returns, there is almost no risk of principal loss.\nHowever, investors should remember that the rate of return from such an investment is limited when compared to other high-risk options.\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tAdvantages of FD<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFD investors can look forward to the following benefits from their investments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAssured returns<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tUnlike most other investment schemes, FDs offer guaranteed returns on the deposited sum.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tOffers great flexibility<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tThe\u00a0best FD\u00a0plans offer flexibility when it comes to the tenure of the plan. Depending on investor goals, they can either open short-term FD accounts or long-term FD accounts. For reference, most financial institutions offer maturity tenures ranging from 7 days to 10 years.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHigh capital appreciation<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tCumulative fixed deposit plans compound interest monthly or quarterly or half-yearly. Hence, the deposit amount is substantially appreciated by the end of tenure.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAn additional source of income<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tThe investor can select the frequency of interest payout for non-cumulative fixed deposit plans. Therefore, they can act as an added source of income.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tDisadvantages of FD<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tWhile\u00a0bank fixed deposits\u00a0are greatly beneficial for many, they suffer from certain disadvantages as well. Here are some limitations for such instruments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tInterest rates remain fixed<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tFixed deposit interest rates do not grow over time or comply with inflation. Therefore, they are not the appropriate choice for investment if an individual is trying to beat inflation.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDeposit lock-in<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tA lump sum amount is locked-in for a specific period. You cannot use this money in case of emergencies if you want to ensure proper returns from the investment. Early withdrawals lead to penalties and additional charges.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tEarly withdrawal charges<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tIf an investor decides to initiate a premature withdrawal from an FD, they will end up forfeiting a portion of their interest earnings from the scheme.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tLimited or no tax benefits<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tUnless an individual specifically opts for tax-saving FDs, investors are not eligible for any tax exemptions or rebates on the fixed deposit interest earnings.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t
A fixed deposit refers to an investment scheme that banks and non-banking financing companies provide. FDs offer greater returns on the principal invested when compared to the returns generated from a regular savings account.<\/p>
Fixed deposits have a fixed tenure, hence the name. Depending on a consumer\u2019s investment portfolio, the FD investment period can either be short-term or long-term. The interest rates on fixed deposits vary from one company or bank to another.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Our Partners<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\t\n\t\t\t<\/div><\/figure>\n\t\t\t\n\t\t\t\t\n\t\t\t<\/div><\/figure>\n\t\t\t\n\t\t\t\t\n\t\t\t<\/div><\/figure>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\tTypes of FD's<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tThere are several fixed deposit types that investors need to know about before investing. Without such knowledge, you may end up picking up plans not suitable to your investment objectives. Listed below are some of the common options open to prospective investors.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCorporate fixed deposits<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tThese are fixed deposit schemes that are held by companies, other than banks. Also known as company FDs, investing in such instruments, may, in some cases, lead to higher returns.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tStandard fixed deposits<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tStandard plans are basic investment schemes where you invest a fixed amount with a financial institution. After the fixed maturity period expires, you are eligible to receive the principal amount, along with the interest earnings from the scheme.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tSenior citizen fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIndividuals aged over 60 years are also eligible to invest in fixed deposit instruments. However, most plans geared to this age group offer flexible tenure options. Additionally, senior citizen investors are eligible for higher interest rates on their investments compared to the standard schemes.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tTax-saving fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIf the primary goal of an investment is to save taxes, investors can take advantage of tax-saving FDs. However, the maximum deposit for such plans is limited to Rs. 1.5 Lakh per year. The lock-in period for this type of FD is 5 years.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCumulative fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIn these fixed deposit schemes, the interest is compounded quarterly, half-yearly, or yearly. However, the total interest earnings are paid at the time of maturity. Opting for this kind of FD allows you to build your corpus considerably.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tNon-cumulative fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tInterest earnings on fixed deposits are paid out monthly, quarterly, or half-yearly. This option is best for investors looking for a regular source of income. Hence, pensioners benefit prominently from such plans.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tFlexi fixed deposit plans<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIn this case, the deposit moves between a savings account and an\u00a0FD account. Therefore, to initiate an investment using Flexi FDs, investors need to connect the fixed deposit account with their savings account. Investors can enjoy high-interest rates on their deposits along with liquidity with this category of FD plans.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tNRO fixed deposit account<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tNon-resident Indians can deposit their earnings generated from India in an NRO FD account. The interest earned from these FD accounts can be repatriated entirely by NRO account holders, and the principal amount can only be repatriated up to a certain limit.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tNRE fixed deposit account<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tNRIs can remit their income generated abroad and invest in an NRE fixed deposit account. Both the interest and principal are repatriable in this case.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tWho Should Invest in Fixed Deposit?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFixed deposits are perfect investment instruments for inexperienced investors. Further, risk-averse individuals can benefit greatly from such schemes. Since FDs offer assured returns, there is almost no risk of principal loss.\nHowever, investors should remember that the rate of return from such an investment is limited when compared to other high-risk options.\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tAdvantages of FD<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFD investors can look forward to the following benefits from their investments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAssured returns<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tUnlike most other investment schemes, FDs offer guaranteed returns on the deposited sum.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tOffers great flexibility<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tThe\u00a0best FD\u00a0plans offer flexibility when it comes to the tenure of the plan. Depending on investor goals, they can either open short-term FD accounts or long-term FD accounts. For reference, most financial institutions offer maturity tenures ranging from 7 days to 10 years.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHigh capital appreciation<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tCumulative fixed deposit plans compound interest monthly or quarterly or half-yearly. Hence, the deposit amount is substantially appreciated by the end of tenure.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAn additional source of income<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tThe investor can select the frequency of interest payout for non-cumulative fixed deposit plans. Therefore, they can act as an added source of income.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tDisadvantages of FD<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tWhile\u00a0bank fixed deposits\u00a0are greatly beneficial for many, they suffer from certain disadvantages as well. Here are some limitations for such instruments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tInterest rates remain fixed<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tFixed deposit interest rates do not grow over time or comply with inflation. Therefore, they are not the appropriate choice for investment if an individual is trying to beat inflation.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDeposit lock-in<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tA lump sum amount is locked-in for a specific period. You cannot use this money in case of emergencies if you want to ensure proper returns from the investment. Early withdrawals lead to penalties and additional charges.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tEarly withdrawal charges<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tIf an investor decides to initiate a premature withdrawal from an FD, they will end up forfeiting a portion of their interest earnings from the scheme.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tLimited or no tax benefits<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tUnless an individual specifically opts for tax-saving FDs, investors are not eligible for any tax exemptions or rebates on the fixed deposit interest earnings.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t
\n\t\t\t<\/div><\/figure>\n\t\t\t<\/div><\/figure>\n\t\t\t<\/div><\/figure>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\tTypes of FD's<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tThere are several fixed deposit types that investors need to know about before investing. Without such knowledge, you may end up picking up plans not suitable to your investment objectives. Listed below are some of the common options open to prospective investors.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCorporate fixed deposits<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tThese are fixed deposit schemes that are held by companies, other than banks. Also known as company FDs, investing in such instruments, may, in some cases, lead to higher returns.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tStandard fixed deposits<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tStandard plans are basic investment schemes where you invest a fixed amount with a financial institution. After the fixed maturity period expires, you are eligible to receive the principal amount, along with the interest earnings from the scheme.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tSenior citizen fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIndividuals aged over 60 years are also eligible to invest in fixed deposit instruments. However, most plans geared to this age group offer flexible tenure options. Additionally, senior citizen investors are eligible for higher interest rates on their investments compared to the standard schemes.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tTax-saving fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIf the primary goal of an investment is to save taxes, investors can take advantage of tax-saving FDs. However, the maximum deposit for such plans is limited to Rs. 1.5 Lakh per year. The lock-in period for this type of FD is 5 years.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCumulative fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIn these fixed deposit schemes, the interest is compounded quarterly, half-yearly, or yearly. However, the total interest earnings are paid at the time of maturity. Opting for this kind of FD allows you to build your corpus considerably.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tNon-cumulative fixed deposit<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tInterest earnings on fixed deposits are paid out monthly, quarterly, or half-yearly. This option is best for investors looking for a regular source of income. Hence, pensioners benefit prominently from such plans.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tFlexi fixed deposit plans<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tIn this case, the deposit moves between a savings account and an\u00a0FD account. Therefore, to initiate an investment using Flexi FDs, investors need to connect the fixed deposit account with their savings account. Investors can enjoy high-interest rates on their deposits along with liquidity with this category of FD plans.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tNRO fixed deposit account<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tNon-resident Indians can deposit their earnings generated from India in an NRO FD account. The interest earned from these FD accounts can be repatriated entirely by NRO account holders, and the principal amount can only be repatriated up to a certain limit.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tNRE fixed deposit account<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\tNRIs can remit their income generated abroad and invest in an NRE fixed deposit account. Both the interest and principal are repatriable in this case.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tWho Should Invest in Fixed Deposit?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFixed deposits are perfect investment instruments for inexperienced investors. Further, risk-averse individuals can benefit greatly from such schemes. Since FDs offer assured returns, there is almost no risk of principal loss.\nHowever, investors should remember that the rate of return from such an investment is limited when compared to other high-risk options.\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tAdvantages of FD<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFD investors can look forward to the following benefits from their investments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAssured returns<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tUnlike most other investment schemes, FDs offer guaranteed returns on the deposited sum.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tOffers great flexibility<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tThe\u00a0best FD\u00a0plans offer flexibility when it comes to the tenure of the plan. Depending on investor goals, they can either open short-term FD accounts or long-term FD accounts. For reference, most financial institutions offer maturity tenures ranging from 7 days to 10 years.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHigh capital appreciation<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tCumulative fixed deposit plans compound interest monthly or quarterly or half-yearly. Hence, the deposit amount is substantially appreciated by the end of tenure.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAn additional source of income<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tThe investor can select the frequency of interest payout for non-cumulative fixed deposit plans. Therefore, they can act as an added source of income.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tDisadvantages of FD<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tWhile\u00a0bank fixed deposits\u00a0are greatly beneficial for many, they suffer from certain disadvantages as well. Here are some limitations for such instruments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tInterest rates remain fixed<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tFixed deposit interest rates do not grow over time or comply with inflation. Therefore, they are not the appropriate choice for investment if an individual is trying to beat inflation.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDeposit lock-in<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tA lump sum amount is locked-in for a specific period. You cannot use this money in case of emergencies if you want to ensure proper returns from the investment. Early withdrawals lead to penalties and additional charges.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tEarly withdrawal charges<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tIf an investor decides to initiate a premature withdrawal from an FD, they will end up forfeiting a portion of their interest earnings from the scheme.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tLimited or no tax benefits<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tUnless an individual specifically opts for tax-saving FDs, investors are not eligible for any tax exemptions or rebates on the fixed deposit interest earnings.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t
There are several fixed deposit types that investors need to know about before investing. Without such knowledge, you may end up picking up plans not suitable to your investment objectives. Listed below are some of the common options open to prospective investors.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
These are fixed deposit schemes that are held by companies, other than banks. Also known as company FDs, investing in such instruments, may, in some cases, lead to higher returns.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
Standard plans are basic investment schemes where you invest a fixed amount with a financial institution. After the fixed maturity period expires, you are eligible to receive the principal amount, along with the interest earnings from the scheme.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
Individuals aged over 60 years are also eligible to invest in fixed deposit instruments. However, most plans geared to this age group offer flexible tenure options. Additionally, senior citizen investors are eligible for higher interest rates on their investments compared to the standard schemes.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
If the primary goal of an investment is to save taxes, investors can take advantage of tax-saving FDs. However, the maximum deposit for such plans is limited to Rs. 1.5 Lakh per year. The lock-in period for this type of FD is 5 years.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
In these fixed deposit schemes, the interest is compounded quarterly, half-yearly, or yearly. However, the total interest earnings are paid at the time of maturity. Opting for this kind of FD allows you to build your corpus considerably.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
Interest earnings on fixed deposits are paid out monthly, quarterly, or half-yearly. This option is best for investors looking for a regular source of income. Hence, pensioners benefit prominently from such plans.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
In this case, the deposit moves between a savings account and an\u00a0FD account. Therefore, to initiate an investment using Flexi FDs, investors need to connect the fixed deposit account with their savings account. Investors can enjoy high-interest rates on their deposits along with liquidity with this category of FD plans.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
Non-resident Indians can deposit their earnings generated from India in an NRO FD account. The interest earned from these FD accounts can be repatriated entirely by NRO account holders, and the principal amount can only be repatriated up to a certain limit.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
NRIs can remit their income generated abroad and invest in an NRE fixed deposit account. Both the interest and principal are repatriable in this case.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Who Should Invest in Fixed Deposit?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFixed deposits are perfect investment instruments for inexperienced investors. Further, risk-averse individuals can benefit greatly from such schemes. Since FDs offer assured returns, there is almost no risk of principal loss.\nHowever, investors should remember that the rate of return from such an investment is limited when compared to other high-risk options.\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tAdvantages of FD<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFD investors can look forward to the following benefits from their investments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAssured returns<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tUnlike most other investment schemes, FDs offer guaranteed returns on the deposited sum.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tOffers great flexibility<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tThe\u00a0best FD\u00a0plans offer flexibility when it comes to the tenure of the plan. Depending on investor goals, they can either open short-term FD accounts or long-term FD accounts. For reference, most financial institutions offer maturity tenures ranging from 7 days to 10 years.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHigh capital appreciation<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tCumulative fixed deposit plans compound interest monthly or quarterly or half-yearly. Hence, the deposit amount is substantially appreciated by the end of tenure.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAn additional source of income<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tThe investor can select the frequency of interest payout for non-cumulative fixed deposit plans. Therefore, they can act as an added source of income.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tDisadvantages of FD<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tWhile\u00a0bank fixed deposits\u00a0are greatly beneficial for many, they suffer from certain disadvantages as well. Here are some limitations for such instruments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tInterest rates remain fixed<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tFixed deposit interest rates do not grow over time or comply with inflation. Therefore, they are not the appropriate choice for investment if an individual is trying to beat inflation.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDeposit lock-in<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tA lump sum amount is locked-in for a specific period. You cannot use this money in case of emergencies if you want to ensure proper returns from the investment. Early withdrawals lead to penalties and additional charges.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tEarly withdrawal charges<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tIf an investor decides to initiate a premature withdrawal from an FD, they will end up forfeiting a portion of their interest earnings from the scheme.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tLimited or no tax benefits<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tUnless an individual specifically opts for tax-saving FDs, investors are not eligible for any tax exemptions or rebates on the fixed deposit interest earnings.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t
Advantages of FD<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFD investors can look forward to the following benefits from their investments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAssured returns<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tUnlike most other investment schemes, FDs offer guaranteed returns on the deposited sum.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tOffers great flexibility<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tThe\u00a0best FD\u00a0plans offer flexibility when it comes to the tenure of the plan. Depending on investor goals, they can either open short-term FD accounts or long-term FD accounts. For reference, most financial institutions offer maturity tenures ranging from 7 days to 10 years.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHigh capital appreciation<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tCumulative fixed deposit plans compound interest monthly or quarterly or half-yearly. Hence, the deposit amount is substantially appreciated by the end of tenure.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAn additional source of income<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tThe investor can select the frequency of interest payout for non-cumulative fixed deposit plans. Therefore, they can act as an added source of income.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tDisadvantages of FD<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tWhile\u00a0bank fixed deposits\u00a0are greatly beneficial for many, they suffer from certain disadvantages as well. Here are some limitations for such instruments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tInterest rates remain fixed<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tFixed deposit interest rates do not grow over time or comply with inflation. Therefore, they are not the appropriate choice for investment if an individual is trying to beat inflation.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDeposit lock-in<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tA lump sum amount is locked-in for a specific period. You cannot use this money in case of emergencies if you want to ensure proper returns from the investment. Early withdrawals lead to penalties and additional charges.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tEarly withdrawal charges<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tIf an investor decides to initiate a premature withdrawal from an FD, they will end up forfeiting a portion of their interest earnings from the scheme.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tLimited or no tax benefits<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tUnless an individual specifically opts for tax-saving FDs, investors are not eligible for any tax exemptions or rebates on the fixed deposit interest earnings.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t
FD investors can look forward to the following benefits from their investments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Unlike most other investment schemes, FDs offer guaranteed returns on the deposited sum.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
The\u00a0best FD\u00a0plans offer flexibility when it comes to the tenure of the plan. Depending on investor goals, they can either open short-term FD accounts or long-term FD accounts. For reference, most financial institutions offer maturity tenures ranging from 7 days to 10 years.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
Cumulative fixed deposit plans compound interest monthly or quarterly or half-yearly. Hence, the deposit amount is substantially appreciated by the end of tenure.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
The investor can select the frequency of interest payout for non-cumulative fixed deposit plans. Therefore, they can act as an added source of income.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
Disadvantages of FD<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tWhile\u00a0bank fixed deposits\u00a0are greatly beneficial for many, they suffer from certain disadvantages as well. Here are some limitations for such instruments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tInterest rates remain fixed<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tFixed deposit interest rates do not grow over time or comply with inflation. Therefore, they are not the appropriate choice for investment if an individual is trying to beat inflation.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDeposit lock-in<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tA lump sum amount is locked-in for a specific period. You cannot use this money in case of emergencies if you want to ensure proper returns from the investment. Early withdrawals lead to penalties and additional charges.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tEarly withdrawal charges<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tIf an investor decides to initiate a premature withdrawal from an FD, they will end up forfeiting a portion of their interest earnings from the scheme.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tLimited or no tax benefits<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\tUnless an individual specifically opts for tax-saving FDs, investors are not eligible for any tax exemptions or rebates on the fixed deposit interest earnings.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t
While\u00a0bank fixed deposits\u00a0are greatly beneficial for many, they suffer from certain disadvantages as well. Here are some limitations for such instruments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Fixed deposit interest rates do not grow over time or comply with inflation. Therefore, they are not the appropriate choice for investment if an individual is trying to beat inflation.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
A lump sum amount is locked-in for a specific period. You cannot use this money in case of emergencies if you want to ensure proper returns from the investment. Early withdrawals lead to penalties and additional charges.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
If an investor decides to initiate a premature withdrawal from an FD, they will end up forfeiting a portion of their interest earnings from the scheme.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
Unless an individual specifically opts for tax-saving FDs, investors are not eligible for any tax exemptions or rebates on the fixed deposit interest earnings.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t