Under Fixed Deposit, a fixed amount is deposited for a specific period. In case of withdrawal of the amount before the completion of the tenure, a penalty is usually charged from the fixed deposit account holder. Fixed deposit also known as Term deposit or Time deposit, helps an investor get high rate of return as compared to savings account. Fixed Deposits are considered a safe option as compared to other forms of investment like Stock Market or Post Office schemes. Fixed Deposit term usually ranges between 7 days to 10 years with interest rate going upto 9%.
Below are some of the features & benefits of investing iIn Fixed Deposits
Gone are the days when you had to walk up to the bank to open a Fixed Deposit account. Today, you can open a Fixed Deposit online in a jiffy. The new-age banking allows you to invest in Fixed Deposit through internet & mobile banking
On successful completion of the above steps, your Fixed Deposit account will be opened instantaneously
To apply for a fixed deposit, you must fulfill the following conditions.
Nationality: You must be a resident individual or fall into Hindu Undivided Families (HUF) or a Foreign national residing in India. If you are a foreign national, you should obtain an undertaking in form QA 22 stating the sources.
You must submit the following documents for a fixed deposit
Fixed deposit interest rates differ for different financial institutions. Usually the interest rates vary from 4% to 9%