What is a Fixed Deposit?

What is a Fixed Deposit?

An investment of a certain amount of money with a bank or a non-banking institution such as a Housing Finance Company for a fixed period of time, at a fixed rate of interest.

What is the minimum and maximum tenure of a Fixed Deposit?

You can open a Fixed Deposit for a minimum tenure of 7 days and a maximum tenure of 10 years

Are Fixed Deposits taxable?

The interest that you receive on your Fixed Deposit is taxable. You can submit Form 15G to your bank.

How do I receive the interest amount?

Pay-out : The interest amount is credited to your bank account on monthly or quarterly basis.
Compounding: A compounded interest is added to the principal amount of the fixed Deposit every quarter and is reinvested.

Are there any tax benefits?

Banks also offer tax-saving Fixed Deposits that have a lock-in period of 5 years. You can claim tax deductions under section 80c of Income Tax act.

Using Fixed Deposit Calculator, To prepare a plan and illustration of your investment.
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