Fixed Deposit
What is a fixed deposit?
A fixed deposit is an account that allows you to deposit your money for a fixed period of time, earning you interest at a fixed rate. It gives you a higher rate of interest than a savings bank account.
How do I apply for an FD account?
You can get a bank FD at any bank. You have to open an FD account with the bank to make the deposit. Some banks may also insist that you maintain a savings account with them to operate an FD account.
You can get a bank FD at any bank. You have to open an FD account with the bank to make the deposit. Some banks may also insist that you maintain a savings account with them to operate an FD account. When you open the FD account, you are issued a deposit receipt or an account statement. This statement can be updated, depending on the duration of the FD and the frequency of interest calculation. Make sure you check deposit receipts carefully to see that all particulars have been properly and accurately filled in.
Have to pay tax deducted at source (TDS) for FDs?
Tax is deducted at source on the interest accrued on FDs as applicable, as per the Income Tax Act, 1961.
How will investing in fixed deposits benefit me?
Apart from the fixed rate of return on your FD investment, you can withdraw the FD at any time before maturity without any difficulty. You can also avail loans.