Fixed Deposit

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Fixed deposit, also known as term deposit is a financial investment instrument provided by banks and financial institutions. Investor deposits a certain sum of money and gains fixed interest for the tenure of the deposit. Investors, who are conservative and want guaranteed return, prefer to opt for Fixed deposit investments. Fixed deposit is a safe, quick and easy investment option. Rate of interest paid on fixed deposit varies depending on the amount and tenure.

Factors to consider before investing in Fixed Deposit

  • Don’t invest all your investment with the single provider. It will help you to avoid breaking one entire deposit in case of emergency situations. You can save on premature withdrawal penalty, as it will be paid for a smaller amount.
  • Select right tenure for your investment in Fixed Deposit schemes. Different tenure may have different interest rate on investment. Also, selecting right tenure as per your financial requirement may assist you to avoid premature withdrawal and save money on withdrawal penalty and interest return on investment.
  • The income earned on the deposit by the individual on their spouse and kids shall get clubbed with individual’s tax purpose.

Fixed Deposit in Mumbai

Fixed Deposits Benefits

  • Assured Returns: Fixed deposit provide assured and guaranteed return on investment. Fixed Deposit are not a risky investment as they do not depend on the market fluctuation. In short, market volatility doesn’t impact or influence the paid returns on Fixed Deposit.
  • Flexi-Tenure: Investors can plan and decide tenure for Fixed Deposit depending on their futuristic financial requirement. Tenure of Fixed Deposit can be of 1 month or 1 year or 5 years or 10 years.
  • Good Rate of Return: Rate of interest offered on fixed deposits are higher than that on saving account.
  • Interest rate Pay-outs: One can decide the intervals on the chosen term at which he/she wants interest to be paid. Interest rates pay-out are provided at monthly, annually or maturity. Investors normally opt for Monthly or Annually interest rate pay-out.
  • Withdraw Condition: Invested amount in Fixed deposit can be partially or completely withdrawn with minor penalty. Investor may lose a certain interest component of the income on Fixed deposit and withdraw its investment.
  • Tax Saving Fixed Deposit Scheme: Tax saving deposit scheme falls under the tax deduction Section 80C. One cannot withdraw prematurely under such fixed deposit scheme.
  • Loan Against Fixed Deposit: Many banks offer loans against fixed deposit upto 90% of the Fixed deposit value. Rate of interest of Loan Against Fixed Deposit is normally lower than other personal loan.
Regular Deposit upto ₹5 crore
Tenure (Months) Cumulative Option* ROI (p.a.) Cumulative Option* ROI (p.a.)
Return on Investment Tentative yield to maturity Monthly Quarterly Half Yearly Annual
12 – 23 8.30% 8.30% 8.00% 8.05% 8.10% 8.30%
24 – 35 8.30% 8.64% 8.00% 8.05% 8.10% 8.30%
36 – 47 8.40% 9.13% 8.10% 8.15% 8.20% 8.40%
48-59 8.40% 9.52% 8.10% 8.15% 8.20% 8.40%
60-71 8.45% 10.00% 8.15% 8.20% 8.25% 8.45%
72-84 8.30% 10.23% 8.00% 8.05% 8.10% 8.30%
120 8.25% 12.09% 7.95% 8.00% 8.05% 8.25%
Special Deposit upto ₹5 crore
Tenure (Months) Cumulative Option* ROI (p.a.) Cumulative Option* ROI (p.a.)
Return on Investment Tentative yield to maturity Monthly Quarterly Half Yearly Annual
15 8.30% 8.42% 8.00% 8.05% 8.10% 8.30%
22 8.35% 8.62% 8.05% 8.10% 8.15% 8.35%
30 8.30% 8.84% 8.00% 8.05% 8.10% 8.30%
44 8.45% 9.45% 8.15% 8.20% 8.25% 8.45%

* For cumulative option, interest rate is compounded annually on March 31st

  • Above rates are applicable upto ₹ 5 Crore of deposits
  • Senior citizen rates (0.25% additional) are applicable for deposits up to ₹ 1 Crore only

Documents Check-list for Fixed Deposit

  • PAN Card
  • Residence Proof (Passport, Driving License, Telephone Bill, Electricity Bill, Ration Card, Any other certificate from Statutory Authority)
  • Duly filled Application Form with a colored photograph.
  • Fixed Deposit Cheque favoring the selected financial institution.