Basic Details about FD Scheme & Interest rate on FDs.
What are the types of fixed deposits that are provided by different commercial banks?
Anamika Verma (58 Points)
23 November 2018
Anamika Verma (58 Points)
23 November 2018Basic Details about FD Scheme & Interest rate on FDs.
Aman Khanna
(Finance Advisior)
(196 Points)
Replied 23 November 2018
Fixed deposit offers a low-risk and reliable source of wealth accumulation with time. if you invest in FD scheme you would receive assured returns within a fixed time and can grow their corpus.
There are different types of fixed deposit available to cater to the diversified needs of the investors. These areas mentioned below -
Regular deposit - these provide a fixed interest rate throughout the lock-in period and can be booked with a minimum amount of just Rs. 25,000. Investors can choose a flexible tenure between 12 to 60 months to book the deposit. Usually, lenders such as NBFCs offer a higher interest rate on FD starting from 8.75% onward.
Tax saving deposit - they offer a tax exemption on the principal amount of up to Rs. 1.5 lakhs. However, the investment cannot be withdrawn before the lock-in period.
Senior citizen deposit - this offers a higher interest rate of 0.35% on the base rate available to senior citizens who are 60 years old and above.
Withdrawal-specific deposit - these are of 2 types - cumulative FD (where deposit+interest income can be withdrawn at the time of maturity) and non-cumulative FD (where deposit+interest income can be withdrawn at monthly, quarterly, half yearly and annual intervals).
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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