FD
Fixed Deposits
A Fixed Deposit (FD), also known as a Term Deposit, is one of the safest and most reliable investment options available. It allows individuals, corporates, and institutions to deposit a lump sum of money with a bank or financial institution for a predetermined period at a fixed interest rate. Upon maturity, the depositor receives the principal amount along with the accumulated interest.
Whether you’re a conservative investor looking for safety and steady returns or someone building a diversified portfolio, fixed deposits remain a cornerstone of smart financial planning.
Features & Benefits of Company Fixed Deposits
Attractive Interest Rates
Generally higher than those offered by
banks.
banks.
Tenure Flexibility
Choose durations that match your short or long-term goals.
Interest Payout Flexibility
Choose how often you wish to receive
interest.
interest.
Non-Transferable
Ensures security; even if the certificate is lost or stolen, it cannot be misused.
Premature Withdrawal Option
Exit early if needed, subject to minimal
penalty.
penalty.
Diversification
Spread your investments across companies in different sectors to minimize risk.
How Fixed Deposits Work
The concept is simple:
You deposit a sum of money with a bank or financial institution for a specific term, ranging from a few months to several years. In return, the institution pays you a fixed interest rate, which is generally higher than a regular savings account. The interest can be compounded or paid out at intervals—monthly, quarterly, half-yearly, annually, or at maturity.
Apart from banks, corporates and Non-Banking Financial Companies (NBFCs) also offer fixed deposits. These are known as Company Fixed Deposits and often offer higher interest rates compared to traditional bank FDs.
Why Choose Fixed Deposits?
Capital Safety
FDs are one of the most secure investment avenues. Your capital is protected, and returns are guaranteed, regardless of market fluctuations.
Predictable Returns
Unlike market-linked instruments, fixed deposits offer fixed interest rates, ensuring certainty and stability in returns.
Flexible Tenure
Choose from a wide range of tenures-from 7 days to 10 years-based on your liquidity needs and financial goals.
Loan Against FD
Need liquidity? Avail up to 90% of your FD amount as a loan without breaking your deposit.
Tax-Saving Options
5-year tax-saving FDs qualify for deductions under Section 80C of the Income Tax Act (subject to conditions).