FIXED DEPOSITS

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Fixed Deposits are deposits where a particular sum of money is invested for a fixed duration. The duration of Fixed Deposits is flexible. It can range from 7 days to 10 years. The rate of interest for the Fixed Deposit depends on the period for which the funds are locked in.

Just like a Recurring Deposit, a Fixed Deposit amount cannot be withdrawn until the maturity period. Premature withdrawal is allowed after the bank charges a penalty in the rate of interest. The minimum amount of investment for a Fixed Deposit is Rs. 5,000. The rate of interest on the Fixed Deposit ranges from 4% to 7.5%. You can also calculate your rate of interest using the FD calculator.

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Some banks provide the option of a sweep-out facility where the amount above a particular balance in a Savings Account is automatically converted to a Fixed Deposit. This helps the Savings Account earn more interest.

How does a fixed deposit work?

A fixed deposit, or 'FD', is a type of savings/investment account that promises the investor a fixed rate of interest. In return, the investor agrees not to withdraw or access their funds for a fixed period of time. In a fixed deposit investment, interest is only paid at the very end of the investment period.

Which bank is best for fixed deposit in 2020?

Banks	FD Interest Rates	Tenure
SBI	2.90% – 5.40%	7 days to 10 years
Canara Bank	2.95% – 5.30%	7 days to 10 years
HDFC	2.50% – 5.50%	7 days to 10 years
PNB Housing Finance	6.20% – 6.70%	12 months to 120 months
ICICI Bank	2.50% – 5.50%	7 days to 10 years
Axis Bank	2.50% – 5.50%	7 days to 10 years
IDFC First Bank	2.75% – 5.75%	7 days to 10 years

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