Fixed Deposit (FD)

A Fixed Deposit (FD) is one of the safest savings instruments in India. You deposit a lump sum for a fixed tenure (from a few months to several years) at an agreed interest rate, and the bank returns your principal plus interest at maturity. Interest is typically compounded quarterly.

Key points:

• Returns are guaranteed and fixed at the time of deposit.
• Senior citizens usually get 0.5% higher rates.
• Interest is taxable per your income-tax slab; banks deduct TDS above certain limits.
• A 5-year tax-saver FD qualifies for a Section 80C deduction.

Estimate your maturity with the FD Calculator.