FD is a financial instrument provided by banks and Non-bank Financial Companies (NBFC).
Fixed Deposit is a Term Deposit. It has a given maturity date. The maturity date can range from 7 days to a 10-year deposit as per the choice of the investor and the options offered by the bank.
FD provides a higher rate of interest than a savings bank account. Assured return on investment, in the form of interest, is one of its main features.
It may or may not require the creation of a separate bank account.
It has low liquidity. Premature withdrawal of the deposit is possible on fulfillment of certain terms and conditions.
Interest payments can be received monthly, quarterly, annual, or on maturity. It can be simple interest or compounded, as per the terms of the Fixed Deposit chosen.
Some banks offer overdraft facility against FDs. This eliminates the need to liquidate your FD in case of an emergency.
Renewal of Fixed Deposit is very easy.
Tax is deducted at source (TDS) on the interest on FD, in accordance with the Income Tax Act, 1961.
Identity and Age Proof: Photocopy of Passport, PAN Card, Voter ID Card or any other Government ID Card
Residence Proof: Photocopy of Passport, Electricity Bill, Telephone Bill, Bank Pass Book, and Statement or any other current proof of residence
Duly filled application form with a passport size photograph, signature, and name of the nominee
Original documents for verification on submission of the form and the accompanying photocopies.
5-Year Tax Saving Fixed Deposit This is a tax saving product with a tenure of 5 years. A minimum deposit of INR 1,000 is required with the maximum being INR 1,50,000, per financial year. This is available to all resident individuals, minors, and HUFs.
Regular Fixed Deposits Flexibility, security, and a fantastic return on investment are offered on regular Fixed Deposits. Net banking and the online facility are offered along with monthly and quarterly payout options to choose from.
