What are the different Fixed Deposits to consider?

Fixed Deposits
Written by Editor N4GM

If you have some money and you want to make some money from your existing money without any risk then a “Fixed Deposit” is the option you should go through.

Fixed Deposit is designed for investors who are wary of risk Fixed Deposit is allow investors to gain interest from the deposit amount for a set period of time. The interest rates range from 4.5% to 8% annually depending on the selected time period. The duration could extend by 10 years.


If you decide to invest in FDs that are locked, you secure an amount of money for a set time. They earn interest during the entire period. The interest earned will be included in the principle frequently. Since the terms are flexible, it is possible to manage several FD Accounts with different tenures. This means you make more. In addition, non-resident Indians are able to open the FD within India.

They can be opened as Term Deposits at the bank in which you have the Savings account. Some banks permit the opening of an FD account even though you have Savings Account. But, you have to complete the KYC procedure by providing important documents, such as ID evidence, address proofs, or passport-sized images, as well as other similar documents.

Different Types Of FDs:

There are different FD Accounts that you can open.

Some common types of fixed deposits include:

1. Bank fixed deposits or Standard FDs: These are deposits made with banks, and they offer a fixed rate of interest for a fixed period of time. Here, you can deposit your funds for a fixed tenure, ranging between seven days to 10 years. FD interest rates are better than Savings Accounts. 

2. Corporate fixed deposits: These are deposits made with companies, and they offer higher interest rates compared to bank fixed deposits. In such accounts, you receive a tax exemption on the principal sum for up to Rs. 1.5 lakh yearly. The lock-in period is five years within which you cannot withdraw funds. You can only make Lumpsum Investment once. 

3. Tax-saving fixed deposits: These are fixed deposits that offer tax benefits under certain conditions.

4. Foreign currency fixed deposits: These are fixed deposits in a foreign currency, and they are suitable for individuals who expect the value of the foreign currency to appreciate relative to the domestic currency.

5. Short-term fixed deposits: These are fixed deposits with a maturity period of less than one year.

6. Long-term fixed deposits: These are fixed deposits with a maturity period of more than five years.

7. Senior Citizen FDs: It applies to those who are 60 years old. Senior citizens also receive special interest rates. The tenures are flexible. 

8. Cumulative FDs: Here, the interest rates get compounded quarterly or yearly and paid during maturity. It substantially grows your savings. 

9. Non-Cumulative FDs: Interest rates get paid out monthly, quarterly, half-yearly, or annually here. This is the best bet for pensioners who seek a regular income source. 

10. Flexi FDs: They are linked to your Bank Account. So, the money generally shuttles between Savings and an FD Account.

Before choosing a fixed deposit, it is important to consider factors such as the interest rate, the terms and conditions of the deposit, the creditworthiness of the issuer, and the stability and reputation of the issuer.

About the author

Editor N4GM

He is the Chief Editor of n4gm. His passion is SEO, Online Marketing, and blogging. Sachin Sharma has been the lead Tech, Entertainment, and general news writer at N4GM since 2019. His passion for helping people in all aspects of online technicality flows the expert industry coverage he provides. In addition to writing for Technical issues, Sachin also provides content on Entertainment, Celebs, Healthcare and Travel etc... in

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