Banking Services - Fixed Deposits

Fixed Deposit (FD)

What is a Fixed Deposit?

A Fixed Deposit (FD) is a safe investment option offered by banks and NBFCs, where you deposit a lump sum for a fixed period at a fixed interest rate. It’s considered one of the most secure and risk-free investment options.

 Key Features

• Investment Amount: Start from ₹1,000 (varies by bank).

• Tenure: From 7 days to 10 years.

• Interest Rate: Generally 3% – 8% p.a., higher for senior citizens.

• Returns: Guaranteed, unaffected by market fluctuations.

• Loan Facility: You can take a loan against FD (usually up to 90%).

Benefits of FD

• Safe & risk-free investment

• Fixed, guaranteed returns

• Flexible tenure

• Senior citizens get extra interest (0.25% – 0.75% higher)

• Option for monthly/quarterly interest payout (good for regular income)