Fixed Deposit


  Investment Objective: To generate fixed income on regular basis.
  Typically it is a loan given, against which the investor gets interest at specified rate for specific period
  Who offers Fixed Deposits:
  Banks,
  Post Office
  Government Companies
  Public Sector Undertaking Companies
  Manufacturing Companies
  NBFC's
  What is the duration of Investment:
  It varies from 1 Year to 5 Years.
  Is it possible to prematurely withdraw a fixed deposit?
  Yes. You can preclose a fixed deposit. But it may attract a penal interest for preclosure.
  What is the interest rate offered on these fixed deposits:
  It varies from 7% to 12%
  Is there any special interest for Senior Citizens (age 65 and above)
  Some companies do offer an extra interest of 0.25% to 0.50%
  What are the interest payment options: It varies between issuing companies
  Monthly
  Quarterly
  Half Yealy
  Annual
  Cumulative
  What is the Taxation law for interest earned from fixed deposit:
  The interest earned is Taxable as per normal tax rates
  Tax deduction at source (TDS) is done when interest earned from any single deposit crosses Rs.5000.
  Who Can invest in a FD?
  Individuals / HUF's / NRI's / Minors / Trusts / Proprietorship firms/ Partnership firms/ Private limited companies / Limited Companies / Societies / Associations.