Investments in fixed deposits, up to Rs. 5 lakhs, are guaranteed by the DICGC, a fully owned subsidiary of RBI.
Fixed Deposits provide guaranteed returns no matter the market fluctuations. The bank will pay the interest rate as promised at the time of investment.
Up to Rs. 1.5 lakhs invested in Fixed Deposits can be claimed as deductions under Sec 80C of the IT Act
Fixed Deposit Details
- What is a Fixed Deposit?
- Eligibility Factors
- Documents Required
- Account Verification process
- Rate of Interest
- Other Details
Fixed Deposits allow customers to safely set aside their savings and earn a fixed rate of interest on them. Thus, allowing for a stable, risk-free return.
Anyone can open a fixed deposit with any bank, for any amount, and any duration as long as it’s over 7 days and under 10 years. There’s no income/employment criteria and the applicant need not have a high Credit Score. That said, there are a few basic requirements such as
- 18 and above.
- In case of a minor, the parents or legal guardian can open a Fixed Deposit on their behalf
- A Citizen of India
- Proof of Identity: PAN Card / Voter ID / Aadhaar Card / Passport / Driving License
- Proof of Address: Aadhaar Card / Lease Documents / Property Purchase Agreement / Utility Bill / Passport / Driving License
- Start by selecting a bank whose fixed deposit is best suited to your needs.
- Submit an online application for opening a fixed deposit on Apnapaisa.com. Your application will be transferred by us to your preferred bank.
- Having received your fixed deposit application, a representative from Apnapaisa.com will call you to verify its details. A pick-up for the documents required will then be subsequently arranged by us or your preferred bank at a place and time of your convenience.
- As soon as your documents are collected and successfully verified, your fixed deposit application will be approved by the said bank.
- Sign the relevant documents and your fixed deposit will be created instantly.
- Cumulative Fixed Deposit:
In this type of Fixed Deposits, the interest accrued is further reinvested in the next cycle at pre-fixed rates. The total Interest amount is paid as a lump sum along with the maturity amount at the end of the FD’s tenure.
- Non-Cumulative Fixed Deposit:
In Non-Cumulative Fixed Deposits, the interest is dispensed off at regular intervals. This type of FD is useful for pensioners, freelancers and homemakers, etc, as it can act as a regular source of income.
- Tax Saving Fixed Deposit:
Individuals can invest up to Rs. 1.5 lakhs every year under Tax-saving Fixed Deposits. This amount can be claimed as deductions under Sec 80C of the IT Act.
However, interest earned on Tax Saving Fixed Deposits is taxable.
Frequently Asked Questions