Fixed Deposits are one such investment vehicle with guaranteed returns and zero risk.
Fixed deposits (FDs) are among the most well-liked investment instruments when it comes to conventional savings and investment instruments. A corpus is parked in an FD account, where it earns interest at a fixed rate. Your returns are dependable because the interest rate on FDs is fixed. Selecting the FD that offers you the best perks is essential if you want to get the most out of your investment. It ought to meet your needs as well. Here is some advice on picking the best type of FD.
Standard Fixed Deposit
For a fixed duration that can be anything from seven days to ten years, the investor parks his money in this FD account. The interest rate is higher than a typical savings account because it is fixed and predetermined. You can use conventional FDs as collateral for loans and overdrafts. You can also take a withdrawal before the account matures, but there will be a fee.
Tax saving Fixed Deposit
Special Fixed Deposit
These funds are invested for set durations of time, just like traditional FDs. The main distinction is that you will receive larger interest than with Standard FDs if you don't withdraw the money for the allotted time.
Senior Citizens Fixed Deposit
These are for those who are older than 60. They provide interest rates that are higher than Standard FDs. A person may work here for ten days or ten years.
Regular Income Fixed Deposit
This kind of FD is the ideal option for you if your income is small and you rely on the money from bank accounts to pay your monthly bills. A monthly or quarterly interest payment is an option.
Flexi Fixed Deposit
These FDs give you the ease and adaptability of both a savings account and an FD. They combine the advantages of savings accounts with FDs, giving you the liquidity of savings accounts as well as the higher interest rates of FDs.
Cumulative Fixed Deposit
These FDs allow you to choose the interval at which interest is compounded. The interest is tacked on to the amount you invested and is paid when the FD matures.
Non-Cumulative Fixed Deposit
You can select the frequency of interest payments with these FDs. For individuals searching for a reliable source of income, it is an excellent investment.
How to pick a good fixed deposit?
1. Interest rate:
Select a bank that will provide you with a high FD interest rate. Longer tenures frequently attract higher interest rates, which vary by bank. Your age may also affect the interest rate because older persons receive a higher interest rate.
2. Loan programme:
The loan facility that FDs provide is one perk. Investors are eligible to borrow up to 90% of their initial deposit. The FD account that offers you the best value against your FD may be the one you wish to select. Of course, you should also choose an FD when a borrowing facility is initially available.
3. Lender's reputation:
FDs are comparatively risk-free, but before investing, carefully research the bank's reputation. Examine an FD's CRISIL or ICRA ratings before choosing it. For credit quality, FAAA and MAAA are the highest ratings granted by CRISIL and ICRA, respectively.
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 "Standard FD, senior citizens FD: Here’s a guide to help you choose FD options to gain more interest")
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