Fixed Deposit Investment Services
Looking for an investment option with a predetermined interest rate and a defined investment period? Fixed deposits can help you plan your savings and estimate your interest income.
What Is a Fixed Deposit?
A Fixed Deposit (FD) is a financial product in which you deposit a specific amount for a selected period at an agreed interest rate. Depending on the product, you may receive interest periodically or receive the principal and accumulated interest at maturity.
Fixed deposits are commonly considered by people who prefer predictable interest terms over market-linked returns. However, the safety, liquidity, and return characteristics depend on the institution and the type of deposit.
At IAC, our aim is to make fixed deposit information easier to understand so you can evaluate your available options.
Find a Fixed Deposit Option That Fits Your Needs
Every fixed deposit category serves a different purpose. Explore the main categories to understand their features and potential uses.
Get Started in Three Simple Steps
The approach you explore should reflect your available funds, financial timeline and ability to manage market fluctuations.
Explore Available Options
Review eligible fixed deposit products, interest rates, issuer details, and available tenures.
Select Your Deposit Terms
Choose the amount you wish to deposit, the investment period, and the interest payout option based on the product's terms.
Complete the Application
Follow the issuer's application and verification process, submit the required documents, and complete the deposit through the authorized channel.
Important Fixed Deposit Features
Financial decisions can feel complicated. We aim to make it easier to understand the basics, identify relevant questions and explore your options with more confidence.
Interest Compounding
Some fixed deposit products accumulate interest over time. The final maturity value depends on the interest rate, compounding method, tenure, and applicable conditions.
Premature Withdrawal
Some deposits permit early withdrawal, potentially subject to a penalty or reduced interest. Certain products may have restrictions on premature withdrawal.
Tax on Interest Income
Fixed deposit interest is generally taxable according to the applicable income tax rules. Tax deducted at source (TDS) may apply based on current regulations and your circumstances.
Credit Rating of Corporate Deposits
Credit ratings provide an indication of an issuer's creditworthiness at a particular time. Ratings can change and do not remove the risk of delayed payment or default.
Fixed Deposits for Your Financial Goals
Plan Your Savings Around What Matters to You
Build a Savings Reserve
Explore deposit options for money you may not need immediately, while keeping sufficient funds accessible for emergencies.
Plan for Future Expenses
Consider a fixed deposit with a maturity date that aligns with an upcoming expense, such as education fees or a planned purchase.
Receive Periodic Interest Income
Explore eligible non-cumulative deposits if periodic interest payments are important for managing your expenses.
Save for Retirement
Evaluate deposit options that may support your income planning, while considering inflation, taxation, liquidity, and your broader financial needs.
Set Aside Money for Short-Term Goals
Compare available deposit periods and withdrawal conditions before committing money that you may need in the near future.
Frequently asked questions:
Find answers to common questions about mutual fund investing. For scheme-specific details, review the official documents and applicable terms.
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What is the minimum amount required to open a fixed deposit?
The minimum deposit amount varies by bank, company, and product. Check the applicable terms before applying.
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Are fixed deposit returns guaranteed?
A fixed deposit generally offers a predetermined interest rate under its agreed terms. However, repayment risk depends on the institution and product. Corporate deposits carry credit risk, and no deposit should be assumed to be risk-free.
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What is the difference between a bank FD and a corporate FD?
A bank FD is placed with a bank, while a corporate FD is accepted by an eligible company or financial institution. Their interest rates, risks, deposit protection, and withdrawal conditions may differ.
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Can I receive interest every month?
Some fixed deposits offer monthly interest payments, while others provide quarterly, annual, or cumulative payout options. Availability depends on the issuer and product.
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Can I withdraw my money before maturity?
Premature withdrawal depends on the deposit's terms. A penalty, reduced interest, or restrictions may apply.
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Are fixed deposit interest earnings taxable?
Interest income is generally taxable under the applicable income tax rules. TDS may also apply depending on current regulations and your circumstances.
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Do senior citizens receive higher FD interest rates?
Some institutions offer additional interest for eligible senior citizens. The rate and eligibility conditions vary.
Protect What Matters The Most
Get in touch to explore health insurance options based on your needs and financial goals.