Invest in a Fixed Deposit to grow your savings, with high stability and safety of principal amount. As one of the safest investment options, fixed deposit enables you to take control of your investments with flexibility and offers guaranteed returns. You can easily choose a tenor between 12 months and 60 months, as per your financial needs.
The full form of FD is fixed deposit, and it is a type of high-yielding deposit offered by banks and NBFCs in India. FD is one of the best investment instruments for risk-averse investors seeking fixed returns. While they are offered by both – banks and NBFCs, FDs offered by NBFCs offer higher returns. When choosing the right NBFC to invest in FD, it is advisable to check the interest rates and research about the safety of your deposit. To safeguard your deposit, you can choose NBFCs with high safety ratings by credit rating agencies like CRISIL and ICRA.
When you put your money to work in fixed deposits, you basically lock the amount for a fixed period of time. You can earn interest on the principal sum throughout the tenure, on a cumulative basis. The interest earned gets added to the principal amount after every specific interval. Since the tenures are flexible, you have the option to manage multiple FD accounts spread across different tenures. That way, you will be able to earn more on your investments. Senior citizens are eligible for additional rates, usually 0.50% more than the existing rate. Other than this, even NRIs (Non-resident Indians) can open FD accounts in India in the form of NRE (Non-resident External) and NRO (Non-resident Ordinary) FDs. You can open a term deposit account with a bank where you already have a savings account. There are banks that let you open an FD account even if you don’t have a savings account with that bank. However, with such banks, you have to go through a KYC process where you have to present relevant documents, including ID proof, address proof, passport size photographs, among others.