Know About Fixed Deposit (FD)

Fixed deposits (FDs) are a popular savings tool in India, providing a safe investment option with assured returns. They offer a higher interest rate compared to a regular savings account, making them an attractive choice for conservative investors. So, how does an FD work ? Understanding this can help you make informed decisions and maximise your returns. How Does an FD Work? A fixed deposit involves depositing a lump sum amount with a bank or Non-Banking Financial Company (NBFC) for a predetermined tenor at a specified interest rate. Upon maturity, you receive the principal amount along with the interest earned. The interest rate for FDs is usually higher than that of savings accounts, and it remains fixed for the entire tenor of the deposit. Principal Amount : This amount can vary depending on the bank or NBFC's minimum deposit requirement. Tenor : This is the duration for which the money is deposited in the FD. It can range from a few months to several years. Banks and NBFCs of...

A Fixed Deposit (FD) is a popular savings tool offered by banks and Non-Banking Financial Companies (NBFCs) in India. It enables investors to place a lump sum amount for a set tenor at a fixed interest rate. Understanding the process of opening an FD account is essential for making informed financial decisions. Step 1: Choose the Right FD Before you open an FD account, it's crucial to research and select the most suitable FD scheme. Consider factors such as the interest rates p.a., the tenor, and the credibility of the bank or NBFC. It's advisable to compare interest rates offered by various banks and NBFCs.  Step 2: Determine the Tenor and Amount Decide on the amount you wish to invest and the tenor of the FD. The interest rate often varies with the tenor and the amount invested. Banks and NBFCs usually offer higher interest rates for longer tenors. Make sure to align your choice with your financial goals and liquidity needs. Step 3: Gather the Required Documents To open an FD...

Non-resident Indians (NRIs) often seek reliable and lucrative options to grow their wealth. Among the various investment opportunities available, Fixed Deposits (FDs) issued by banks and NBFCs (Non-banking Financial Companies) stand out due to their stability and guaranteed returns. However, to maximise financial growth, it is crucial to understand how NRI interest rates work and how to navigate them effectively. Understanding NRI Fixed Deposits NRIs can invest in Fixed Deposits through three main types of accounts: Non-resident Ordinary (NRO), Non-resident External (NRE), and Foreign Currency Non-resident (FCNR) accounts. NRE Accounts : These accounts enable NRIs to deposit their foreign earnings in India. Both the principal and interest earned are fully repatriable, meaning they can be transferred back to the foreign country without restrictions. Moreover, the interest earned on NRE deposits is tax-free in India. NRO Accounts : These accounts are used to manage income earned in Indi...

While choosing the right investment option, understanding the differences between liquid funds and fixed deposits (FDs) can be crucial. Both options have their own set of advantages and serve different financial needs. Liquid Funds Liquid funds are a type of mutual fund with investments primarily in short-term debt securities like treasury bills, commercial paper, and certificates of deposit. The main goal of liquid funds is to provide high liquidity with low risk. Here are some key features: Liquid funds offer high liquidity, allowing investors to withdraw their money within a short period, usually within 24 hours. Returns on liquid funds are not fixed and can vary depending on market conditions. However, they generally offer higher returns than traditional savings accounts. Liquid funds carry a low level of risk but are not entirely risk-free. The value of the investment can fluctuate based on market interest rates and credit risk of the underlying securities. The returns from liquid...

Fixed Deposits (FDs) have long been a staple in the investment portfolios of risk-averse individuals. They offer guaranteed returns, minimal risk, and a straightforward investment process. With the advent of digital banking, FDs have evolved into a more convenient and accessible option. These are regular fixed deposits that can be booked and managed through a digital platform. This means, you do not need to physically visit the nearest branch of the FD issuer. The process is streamlined and designed to provide maximum convenience to the investor. Key Benefits of Online Fixed Deposits Quick and Easy Process : The process of opening an online FD is typically straightforward and quick. Most banks and NBFCs offer user-friendly platforms where you can complete the process within minutes. You simply need to fill in the necessary details, choose the tenor, and transfer the funds. 24/7 Access and Management : With online FDs, you have round-the-clock access to your account. You can monitor you...