Fixed Deposit (FD) – Secure & Stable Investment Option
A Fixed Deposit (FD) is one of the safest and most popular investment options offered by banks and NBFCs. It allows you to deposit a lump sum amount for a fixed period at a guaranteed interest rate—higher than a savings account and completely risk-free.
FDs are ideal for both short-term and long-term financial goals, providing predictable returns and assured capital protection.
Features of Fixed Deposits
✔ Multiple Tenure Options
Choose from flexible durations ranging from 7 days to 10 years.
✔ Guaranteed Earnings
Earn regular interest payouts monthly, quarterly, half-yearly, or annually.
✔ Cumulative & Non-Cumulative Options
Cumulative FD: Interest compounds and is paid at maturity.
Non-Cumulative FD: Periodic interest payout for regular income.
✔ Low Risk, Market-Proof
FD returns are not linked to market fluctuations, ensuring complete stability.
✔ Easy Withdrawal Options
Premature partial or full withdrawal allowed (with small penalty).
✔ Higher Rates from NBFCs
NBFC FDs often offer better interest rates than banks.
✔ Easy Auto-Renewal
Renew your FD instantly and enjoy higher rates (if applicable).
✔ TDS Applicable
Tax is deducted at source based on yearly interest earnings.
Types of Fixed Deposits
✔ Cumulative FD
Interest compounds quarterly or annually
Entire amount is paid at maturity
Ideal for long-term wealth growth
Suitable if you don’t require monthly income
✔ Non-Cumulative FD
Interest paid monthly/quarterly/annually
Best for retirees or those seeking regular income
Entire principal paid on maturity
✔ Tax-Saving FD
5-year lock-in period
Eligible for Section 80C tax deduction up to ₹1.5 lakh
No premature withdrawal allowed
Nomination facility available
Why Invest in a Fixed Deposit?
100% Safe Investment
Deposits up to ₹5,00,000 per depositor per bank are insured under DICGC, ensuring complete capital protection.
Loan Against FD (Up to 90%)
Get a secured loan against your FD without breaking it—much cheaper than personal loans.
Guaranteed & Predictable Returns
The interest rate remains fixed through the entire tenure.
FD Backed Credit Cards
Banks issue credit cards against FDs—ideal for individuals building their credit profile.
Start with as Low as ₹1,000
FDs are affordable for all income groups.
Easy Return Calculation
Fixed rates and known tenure make financial planning simple.
Emergency Liquidity
Withdraw your FD prematurely by paying a small penalty.
⚠️ Limitations of Fixed Deposits
Penalty on premature withdrawal
Lock-in period during the chosen tenure
Interest is fully taxable
Fixed returns (no chance of higher gains like equity)
💡 Taxation on Fixed Deposits
FD interest is fully taxable under “Income from Other Sources”
TDS is deducted if annual interest exceeds ₹10,000
7.5% TDS if PAN is provided
20% TDS if PAN is NOT provided
Submit Form 15G (general) or Form 15H (senior citizens) to avoid TDS (if eligible)
Individuals in higher tax slabs must pay additional tax at 20–30%
📌 Things to Consider Before Choosing an FD
Minimum/maximum deposit amount varies by bank
Check interest rate type (fixed or floating)
Premature withdrawal rules
Frequency of interest payout
Tenure options (1–10 years typically)
Issuer’s safety rating (CRISIL, ICRA)
🧾 Documents Required for Opening an FD
Identity Proof
Aadhaar Card
Voter ID
Driving License
Passport
PAN Card
Address Proof
Utility bill
Bank statement + cancelled cheque
Electricity bill
Telephone bill
💻 How to Open a Fixed Deposit Online Through Bharat Finserv
Follow these simple steps:
✔ Visit Bharat Finserv → Go to Banking Products → Fixed Deposits
✔ Fill in required details (Name, DOB, City, Email, Phone)
✔ View top FD plans from banks & NBFCs
✔ Compare interest rates, tenures & features
✔ Select the best FD plan
✔ You will be redirected to the bank/NBFC website to complete the deposit process online
📞 Need Help
Our experts will help you
📍 Bharat Finserv
101 Sainath Apartment, Jaitpura, Varanasi
🌐 Website: www.bharatfinserv.online
✉️ Email: bharatfinservinfo@gmail.com