Login
Fixed Deposits

Who We Are

A Fixed Deposit (FD), also known as a Term Deposit, is a financial instrument offered by banks and financial institutions where an individual can deposit a lump sum amount of money for a predetermined period at a fixed interest rate. It is considered one of the safest investment options as it offers a guaranteed return on investment.

Here are some key features of Fixed Deposits:

  1. Interest Rate: When you invest in a fixed deposit, you agree to lend your money to the bank or financial institution for a specific period. In return, the bank pays you a fixed interest rate on your investment. This interest rate remains constant throughout the tenure of the fixed deposit.

  2. Tenure: Fixed Deposits come with a fixed tenure or maturity period, which can range from a few months to several years. Common tenure options include 1 month, 3 months, 6 months, 1 year, 3 years, and 5 years, among others.

  3. Guaranteed Returns: One of the primary advantages of fixed deposits is that they offer guaranteed returns. The interest rate is predetermined, and you know how much you'll receive at the end of the tenure.

  4. Low Risk: Fixed deposits are considered low-risk investments because they are typically insured up to a certain limit (e.g., up to a specified amount by government deposit insurance schemes). This means that even if the bank faces financial difficulties, your invested amount (up to the insured limit) is protected.

  5. Liquidity: While fixed deposits are designed to be held until maturity, many banks offer the option to withdraw the funds before maturity, albeit with some penalties or reduction in interest rate. This makes them relatively more liquid compared to some other investment options.

  6. Taxation: The interest earned on fixed deposits is subject to taxation as per the income tax laws of the country. The interest is usually added to your taxable income and taxed at the applicable rate.

  7. Nomination: You can nominate a beneficiary for your fixed deposit, which simplifies the process of transferring the investment to the nominee in case of the investor's demise.

  8. Compound Interest: Some fixed deposits offer compound interest, where the interest earned is added to the principal amount, and subsequent interest calculations are based on this increased amount. This can result in higher overall returns compared to simple interest.

It's important to note that while fixed deposits are considered safe, they might not provide the same level of returns as riskier investments like stocks or mutual funds. The choice of investment depends on your financial goals, risk tolerance, and investment horizon. Always consider these factors and consult a financial advisor before making any investment decisions.