Friends saving is very important to secure your future, because money is an essential need of our life. Nowadays most of the people are inclined to save money and they also adopt various methods to save money. Besides, various schemes for investment are also being implemented by government banks and semi-government banks in addition to the post office. One of these options is FD i.e. Fixed Deposit.
In fact this scheme is very popular in terms of deposits and savings. The main reason for this is that the money deposited in FD account is safe and gives fixed returns. The most important thing is that this scheme is not linked to the stock market, so it is not affected by market fluctuations. In today’s article we are going to give you complete information about FD interest rate and online FD.
What is Fixed Deposit?
Friends Fixed Deposit i.e. FD is one of the safest investment option from the start through which people get higher interest than regular savings account. FD is a safe investment instrument offered by post offices, banks and non-banking financial companies to their customers. Through an FD, people invest a fixed amount at a predetermined interest rate for a specified period of time. Also if the person investing in FD is a senior citizen, they are offered higher interest rates. The best part is, you can cancel your FD account at any time and re-deposit the money from the bank to your account as and when required.
In an FD account, the investor has to deposit a sum of money for a fixed period of time. The amount deposited in this account earns interest at a predetermined rate of interest. Although the interest rates are different in different financial institutions i.e. post office, government and non-government banks, the method of investment is the same. Under Fixed Deposit, you can invest for a maximum period of 10 years. Also if you want to deposit interest in your account every month you can do that too.
5,550 will be credited to your account every month at 6.50% if you make an FD of 10 lakhs. Now it totally depends on you whether you want interest monthly, six months or after 12 months.
Friends if you want to calculate interest rate on Fixed Deposit then you can use this groww FD Calculator.
Fixed Deposit Types?
Standard Fixed Deposits
Under standard term deposits, you invest your money at a predetermined rate of interest for a specified period of time. This period can be from 7 days to 10 years. However, the investment tenure and interest rate depends on the financial institution you are investing with.
Senior Citizen Fixed Deposits
Banks and NBFCs (NBFCs) offer higher interest (0.25-0.50%) on fixed deposits for persons above 60 years of age i.e. senior citizens. Apart from this, the interest earned from senior citizen FD is not tax deductible.
A Recurring Deposit is a type of Fixed Deposit, i.e. FD, in which you can deposit an amount for a fixed period of time (monthly or quarterly). In this, the rate at which you will get interest is pre-determined. On completion of the maturity period, you get interest along with the principal amount.
NRI Fixed Deposit
NRE FDs are suitable for citizens earning in foreign currency. Despite currency fluctuations, the most important advantage of NRI FD is that the entire amount, principal and interest, is tax-free. NRI FDs can be deposited in Indian or foreign currency and are taxed at 30% per annum.
Interest rate is the most important thing when investing money in FD. In other words, it is the return on the amount you invest. In this regard, guidelines are issued by the Reserve Bank from time to time and financial institutions offer interest rates accordingly. However, the interest rates offered by different financial institutions vary.
Hope friends, by reading our article on What is Fixed Deposit you have got complete information about Fixed Deposit. But if you have any doubt, comment below. We will clear all your doubts as soon as possible. And be sure to comment and tell me how you invest your savings.
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