What is Fixed Deposit in Hindi | How to Open Fixed Deposit (FD) Online | How to open fixed deposit account | Best FD interest 2023 | How to do Fixed Deposit
Here we will know what is the fixed deposit and what is the best-fixed deposit (FD) plan 2023, the objetive of FD, fixed deposit interest rates, FD Key Highlights, fixed deposit benefits, eligibility criteria, online application process, etc. You will get complete information. All can check from here, so if you want to take advantage of the best FD scheme then get complete information about Fixed Deposit from here.
What is a Fixed Deposit?
Fixed deposit is a type of financial instrument offered by banks which is seen as one of the safest investment options available. A fixed deposit offers a higher rate of interest than regular savings account. Banks offer flexibility in selecting the fixed deposit tenure which can vary from 10 days to 10 years.
Fixed deposit interest rates depend on various factors such as the tenure of the deposit, financial condition, investment amount, and policies of the bank. And in addition to this, banks and financial institutions offer various features added to the normal fixed deposit like sweep in deposit facility, tax saver fixed deposit. In other words, fixed deposits offer higher return on investment, greater flexibility, higher stability, and security of investors’ hard-earned money.
FD Key highlights
|scheme name||Fixed Deposit (FD)|
|sponsored by||Banks and Financial Institutions|
|Beneficiary||Indian Citizens and NRIs|
|the gain||Higher return on the deposit|
|FD Interest Rates||4%, to 8%|
Benefits of Fixed Deposit
Fixed deposit (FD) schemes are available to the customers in most of banks and NBFCs. By investing in FD, customers can earn interest in their money. In addition, this account earns a higher rate of interest than a savings account.
Fixed deposits are also referred to as FDs in banking parlance as they are created for a fixed tenure (usually from 7 days to 10 years). There is also a deposit of Rs 5 lakh on FD under the Insurance and Credit Guarantee Corporation (DICGC). In the event of the bank becoming insolvent, the amount will be protected by insurance of up to Rs 5 lakh.
Why choose Fixed Deposit
Fixed deposits offer various features and benefits, making it one of the most popular investment options for depositors. We have listed below some of the reasons why we should choose a fixed deposit.
1. Guaranteed Return on Investment
A fixed Deposit provides a guaranteed return on investment. Deposit interest rates are applicable (at the time of investment) which banks make to pay on their investments and Fixed Deposits are always risk-free.
2. Safe Highest Return
The interest rates of fixed deposit deposits are higher than the returns on a savings account. Fixed deposit interest rates vary from 3% to 9.20% per annum depending on the bank and the tenure for which an individual invests.
3. Premature or partial withdrawal
Fixed Deposit with Premature Withdrawal facility allows the depositor to close the Fixed Deposit before the maturity period. However, the account holder will have to pay a premature penalty to the bank for withdrawing the fixed deposit amount before the deposit period. But some banks also offer the facility of premature withdrawal with zero penalty charge. On the other hand, with a fixed deposits without premature withdrawal, depositors cannot withdraw the fixed deposit amount before the deposit tenure.
4. Benefits of Credit Cards
Anyone holding a fixed deposit can avail of a credit card secured against it
5. Flexible Deposit Tenure Options
Fixed deposits come with flexible tenor options ranging from 7 days to 10 years. Fixed deposit interest rates also vary with different tenure options. However, account holders can only invest in tax-advantaged fixed deposits for tenures of 5 years and 10 years. And so are the many reasons why people should choose Fixed Deposits
Documents Required for FD
Top 10 Banks Fixed Deposit Interest Rates in India
|Bank||For ordinary citizens (per year)||For Senior Citizens (PA)|
|State Bank Of India||2.90% to 5.50%||3.40% to 6.30%|
|HDFC Bank||2.50% to 5.75%||3.00% to 6.50%|
|IDBI Bank||2.70% to 5.60%||3.20% to 6.35%|
|Kotak Mahindra Bank||2.50% to 5.90%||3.00% to 6.40%|
|RBL Bank||3.25% to 6.65%||3.75% to 7.15%|
|Punjab National Bank||3.00% to 5.60%||3.50% to 6.10%|
|Canara Bank||2.90% to 5.75%||2.90% to 6.25%|
|axis Bank||2.50% to 5.75%||2.50% to 6.50%|
|Bank Of Baroda||2.80% to 5.35%||3.30% to 6.35%|
|IDFC First Bank||3.50% to 6.50%||4.00% to 7.00%|
|bank of india||2.85% to 5.20%||3.35% to 5.95%|
|Punjab and Sind Bank||3.00% to 5.40%||3.50% to 5.90%|
How to open fixed deposit account online?
Any person can open and compare Fixed Deposit Accounts online on the official website of any bank by following the steps below:
- First of all visit the bank’s website
- Then click on FD scheme
- Now many types of FDs issued by the bank will come in front of you.
- Select your preferred FD here
- After that click on Apply Online button
- Now FD Application Form will open in front of you
- Fill all the information asked in the form
- Finally submit all the documents and deposit the FD amount
- Now submit the form for complete submission.
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