Features of Fixed Deposits(FD)

What is Fixed Deposit (FD)?

A fixed deposit is a type of term deposit that is made by the investor for a fixed time period at applicable FD interest rates and generates interest income. FD investment scheme is considered to be one of the safest modes of investment for any investor who has a preferred low-risk appetite. Under FD, an investor invests a lump sum amount and the principal gets locked up for a fixed period of time. On the maturity of a certain time period, the investor gets the principal along with interest income. The time period for FD investment can either be days or can be a number of years. The interest rate on FD depends upon the years invested and is decided by the financial institution accepting FD and even RBI regularises FD interest rates....

Who Offers Fixed Deposits (FD)?

One of the reason which contributes to the high popularity of FD’s is that they are easy to apply and, are available easily. Fixed deposits are offered by all scheduled commercial banks, NBFCs, HFCs. and, even payments banks like Paytm payment banks and Airtel payment banks offer Fixed Deposit to investors. Private banks can offer better interest rates than public sector banks, but investor should not be attracted to high interest rates without due diligence. It is important for an investor to check the ratings of the financial institution offering FD’s. CRISIL issue ratings for financial institutions which can be used by investor to make a decision whether to invest or not. It is seen that small finance banks are offering better and high interest rates of FD but again investor should pay attention to their ratings....

Features of Fixed Deposits(FD)

Following features are possessed by Fixed deposits:...

How to Invest in Fixed Deposit (FD)?

By Opening an FD Account Offline:...

Benefits of Fixed Deposits (FD)

Apart from the several advantages associated with fixed deposit, the major benefits are as follows:...