FD Calculator
₹1,00,000
6.5%
5
Invested amount
₹1,00,000
Est. returns
₹37,009
Total value
₹1,37,009
Total investment
Total returns
Understanding Fixed Deposits (FDs)
A Fixed Deposit (FD) is a financial instrument offered by banks and financial institutions that provides investors with a higher interest rate than a regular savings account, until the given maturity date. It's a safe investment option where you can deposit your money for a specific period at a predetermined interest rate.
Benefits of Fixed Deposits
- Guaranteed Returns: FDs offer assured returns as the interest rate is fixed at the time of investment.
- Safety: FDs are one of the safest investment options as they are insured by DICGC up to ₹5 lakhs.
- Flexible Tenure: You can choose investment periods ranging from 7 days to 10 years.
- Regular Income Option: Interest can be received monthly, quarterly, or annually.
- Loan Facility: Banks offer loans against FDs at competitive interest rates.
Types of Fixed Deposits
- Standard Fixed Deposit: A basic FD where you deposit money for a fixed period at a predetermined interest rate.
- Tax Saving Fixed Deposit: These FDs have a lock-in period of 5 years and offer tax benefits under Section 80C.
- Cumulative Fixed Deposit: Interest is compounded and paid at maturity along with the principal amount.
- Non-Cumulative Fixed Deposit: Interest is paid out periodically as per the chosen frequency.
- Senior Citizen Fixed Deposit: Offers higher interest rates (usually 0.25% to 0.5% extra) to individuals above 60 years.