What is Fixed Deposit | Features and Benefits of FD – FD Interest Rates

Do you know about Fixed Deposit? Here you can get the complete details of FD. Check the features and interest rates of the Fixed deposit through FD Calculator. Know the importance of FD and open a new account now for saving your money. Read the full article to know the complete information about FD.

Fixed Deposit

Fixed Deposit – Overview

Fixed deposit is also called as the Term deposit. The individuals who do not know about the Fixed deposit and its benefits had come to a right place. In this page, you can see the features and other related information regarding the FD. Therefore, the users can find the more details about FD in the following sections. FD is the one and only best way to save your money. You can also get more money after the completion of the duration period. The users can put the period from before 6 months to 10 years or as higher as you want. While depositing your money in banks, they will give you a receipt. The users have to show that receipt while taking your money from the banks.

Before investing your money, you have to know the interest rates and maturity amount details with the help of the FD calculator. They will give you clear information regarding the maturity amount and interest rates by simply entering some necessary details. We are providing the clear details regarding FD on this page. So, the interested candidates can follow the below sections to know more details about the Fixed deposit.

Brief Details of FD

The Fixed deposit means the money which you deposit is repayable only after the completion of the bond period Everyone should the details of FD Account Opening and fd calculator. Before the situation comes, you have to know the details of FD. By using the duration dropdown, you can update your FD duration period. Most of the banks are offering fixed deposit schemes ranging from short term means seven days to 10 years as per your choice.

Based on the quarterly the interest rate on FD is compounded. The interest rate on loans and overdrafts is 0.5% or 1%. The interest rates and loan rates are increased at a time by Fixed Deposit. FD not only offers good returns, but it is also one of the safest ways to save your money. It is very easy to avail loans on our deposit. Therefore, 80 to 90% amount of the fixed deposit is sanctioned as loan amount.

FD Calculator

Importance of Tenure in Fixed Deposit

Tenure plays an important role in Fixed Deposit. The profit margins in FD are decided by Tenure. Depending on the age groups the tenure profits varies. The different age groups tenure is shown in the below sections. So, follow the below points to know the tenure details.

  • For 20 – 30/35 years:

The persons who are in between the age of 20 years to 35 years can choose a long tenure. Because it is better for them. The users who want to save money for higher studies can go to one or two years tenure. In case the educational loans and home loans are not sanctioned, you can use this Fixed Deposit money.

  • Between 35 years to 50 years:

The people who are in between the age of 35 years to 50 years has many advantages. For these people, 2 years to 3 years tenure period is better to Fixed deposit their money. There is no guarantee on health insurance and policies. At that time these short term Fixed deposits are very helpful for you. They can use for your medical emergencies, etc. You can invest mutual funds and unit-linked plans for your children’s future. After your retirement plans your children can take that amount. Before taking any decision, you must know about the tenure details and interest rates.

  • For 50 years and above:

The individuals who are having 50 years and above 50 years are suggested to choose 3 years or more than 3 yrs as their tenure period. Those people are near to their retirement. For long term tenures, there are many additional tax benefits. So, for these people, the long-term tenure is better for Fixed deposit their money.

FD Eligibility

The Eligibility list of FD is given below. Therefore, the interested persons can check their eligibility in the below sections whether they are eligible to apply for Fixed Deposit or not.

  • Individuals – single accounts.
  • Sole Proprietary Concerns.
  • Two or more individuals – Joint Accounts.
  • Partnership Firms.
  • Blind Persons.
  • Illiterate Persons.
  • Minors.
  • Trusts.
  • Limited Companies.
  • Joint Hindu Families (Accounts of non-trading nature only)
  • Associations, Clubs, Societies, etc.
  • Municipalities.
  • Panchayats.
  • Government and Quasi-Government bodies.
  • Religious Institutions.
  • Charitable Institutions.
  • Educational Institutions (Including Universities).

The persons who belong to any one of the above lists are eligible to apply for a New Fixed Deposit account.

 FD Duration Period

The users can deposit their money for 7 days to 10 years. If you want to extend your term period, you can extend by consulting with the bankers. Depending on the period your interest will increase. If you break the due period, you can do it. But you will lose some interest amount. So, if you have no problem with that, you can take your maturity amount before the duration period.

Fixed Deposit Amount Limitation

The minimum amount of SDR is Rs.1 lack, and for FDR in urban branch and metro areas, the minimum amount is Rs.10,000. The minimum limitation amount for rural, Semi-urban branches and senior citizens is Rs.5000. For single deposit from 7 days to 14 days duration, the minimum FD amount is Rs. 1 lac.

FD Withdrawal

  • Before maturity period, the users are not allowed to withdraw the FD Amount.
  • Withdrawal can be done only by submitting the Fixed deposit receipt issued by the banks.
  • You can draw only Rs.20,000 only in the form of a cheque.
  • The Fixed deposit receipt is very important to draw your cash from banks. So, keep the receipt safe until you receive your maturity amount.

FD Premature or Partial Withdrawal

Before the duration period, the bankers not allows the depositors to withdraw the fixed deposit amount. The interest rates vary according to the duration period. Some selected banks allow a partial withdrawal of Rs.1000. The banks charge a penalty of 1% if you withdraw the maturity amount before the duration period.

Updated: February 25, 2017 — 11:18 am

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