Stated Interest. Defined Tenure. Clear Terms.
A Fixed Deposit (FD) lets you deposit a sum for a fixed tenure at an interest rate stated at the time of investing, subject to the issuer's terms. FDs are offered by banks, and also by NBFCs and companies.
Things to Understand
- Interest payout — Choose cumulative (interest paid at maturity) or periodic payout, as offered by the issuer.
- Tenure and liquidity — Premature withdrawal may attract a penalty or a lower interest rate.
- Issuer risk — Bank deposits are covered by deposit insurance up to the limits under law, whereas company and NBFC deposits carry the credit risk of the issuer.
- Credit rating — Check the issuer's credit rating and track record before investing in non-bank FDs.
- Taxation — Interest is taxable as per your income tax slab, and TDS may apply.
Where FDs Fit
FDs are often used for stable short- to medium-term goals and as part of a liquidity reserve. Because interest rates may not always keep pace with inflation, it helps to consider them alongside your overall asset allocation.
How VALUE ADDITION Helps
We help you compare tenures, payout options and issuer quality, and understand the terms before you invest.
Important note
Interest rates, terms and availability vary by issuer and change over time. Bank deposits are subject to the deposit insurance limits under law, while company and NBFC deposits carry the credit risk of the issuer. This page is general information, not a recommendation. We do not provide SEBI registered investment advisory or portfolio management services.