A fixed deposit signifies an investment pattern that, banks, Co-op Credit societies, post-offices, and other non-banking financial institutions provide. FDs offer superior returns on the principal invested when equated to the returns produced from a regular savings account.
In the case of Fixed Deposits, you invest for a fixed amount of time and get a fixed interest rate, hence the name. Based on a consumerʼs investment portfolio, the FD investment period
Fixed Deposit investors expect the following benefits from their investment
As stated earlier, fixed deposit investments are offered by banks, Co-op Credit societies, post-offices, and other non-banking financial companies. In India, investors have numerous options to open fixed deposit accounts. However, they must compare the interest rates, the credibility of the financial institution, and other features before depositing their funds.
There is no one fixed rate on FD investments across the financial domain. The rate of return for an investor greatly depends on the Co-op Credit society, bank or financial institution offering the investment option. Each one provides different interest rates on deposits. Moreover, the return rate also depends on the age of the investor. Senior citizen investors can expect greater returns when compared to individuals below 60 years.
At Mudra, you get attractive FD interest rates of up to 12%, so you can save for your goals easily. Investing in a Mudra Fixed Deposit is easy, as you can invest from the comfort of your home through an end-to-end paperless online investment process in 3 easy steps.
Fixed deposits are perfect investment tools for investors across a varied profile, objective and age groups. Further, gain seeking, risk-averse individuals can benefit significantly from such schemes. Since FDs offer assured returns, there is no risk involved.
The lower limit and upper limit vary according to the financial institution. Though there might be some lower limit on how much you can start with, there normally isnʼt any higher limit on how much you can invest. Also, the choice of amount will also depend on your financial objectives and goals.
The following people are eligible to invest in a fixed deposit:
Irrespective of the financial institutions you choose to deposit your funds, there are few documents which are common.Some institutions might demand a specific type of document. These are few essential documents:
Investors may be prone to risks when they invest in market-linked instruments to earn higher returns. Hence, to ensure equalized financial growth, investors need to seek safer investment options as well.
Fixed deposits are safe and lead to guaranteed returns, as opposed to risk-prone instruments. Therefore, even when an investor loses money on other investment instruments, they can recover a portion of their losses from the FD investments.
Most financial institutions do offer special interest rates for senior citizens.
Yes. If you need funds urgently you can avail premature withdrawal of your Fixed Deposit.
You can either break your FD or partially withdraw it, although there are penalties for the early closure.
This will attract a penal interest which will be charged/deducted on the interest rate of the tenure completedby the fixed deposit. In the case of partialwithdrawal, similar rules of premature withdrawal are applicable.
In case of unforeseen circumstances, the Fixed Deposit amount can be claimed by the nominee on maturity. This can differ depending on the mode of holding.
