FIXED DEPOSIT - MONTHLY INTEREST-CALCULATOR
Fixed Deposit- Frequently Asked Questions
Fixed Deposits – Frequently Asked Questions
What is a Fixed Deposit?
A fixed deposit (FD) is a financial deposit product that offers at an interest rate higher than that of a regular savings account. It is a type of investment in which an account holder deposits a certain amount with the bank at a fixed interest for a fixed period. On this amount, the bank provides the customer interest until it reaches its maturity. Fixed deposit scheme is a safe investment option because it gives you assured returns. The returns are generally over the returns you get on your savings account. The returns may vary as it depends on the principal amount, FD interest rate and the tenure of your fixed deposit investment.
Deposits can be classified as Domestic and Non-Resident based on the ownership pattern. When resident Indians maintain domestic deposits, non-resident Indians are allowed to maintain Non-Resident deposits. Deposits are normally maintained in Indian Rupee currency, that is, INR. However, there are certain schemes of deposit allowed by Reserve Bank of India through FEMA Notifications where resident as well as non-resident Indians can maintain deposits in specified foreign currencies.
Who can Invest in Fixed Deposits?
- Individuals
- Individuals jointly with other Individuals
- For Minor Individuals by Guardian
- HUF
- Sole proprietary concerns
- Clubs/Associations
- Firms
- Joint stock companies
- Any other entity not prohibited by RBI
What’s the minimum and maximum tenure of investment in an FD account?
Minimum amount for opening an FD is Rs.1000 and there is no maximum amount
What will be the rate of interest for FD?
For latest FD interest rates, please click here.
How will I receive the FD interest amount?
Interest frequency depends on FD plan. For Cash Certificate, interest is paid at maturity along with the principal, whereas for Fixed Deposits, interest payout is done monthly, quarterly or periodically basis the customer’s choice.
Is TDS deductible on the interest earned on term deposits?
In the case of Fixed Deposits and Cash Certificates, applicable TDS will be deducted from the interest credited to operative account/ term deposit periodically.
Income tax will be deducted as per the law applicable and if the depositor‘s total income including the interest earned on deposit does not come under the purview of income tax, 15H/15G has to be submitted by the depositor to the branch after opening the term deposit and at the beginning of the Financial Year in the subsequent Financial Years.
Is nomination facility available for Fixed Deposits ?
Yes, nomination facility is available for Fixed deposits.
Can withdraw FD before its maturity?
Yes. If you need funds urgently, you can avail premature withdrawal of your Fixed Deposit.
Whether will I be notified that my deposit has matured?
Yes, you will be notified when your deposit is about to mature, and again on the date it matures through SMS and e-mail.
Can I take loan against FD?
Yes, you can get loan against FD subject to terms and conditions