Fixed deposits are the form of investment for a fixed period at a fixed rate. They are also called "term deposits". Among the demographics of India, the term "Fixed deposits'' is popularly known as an FD. It is most preferred because of the low risk involved. These fixed deposits are a good means of investing or saving your hard-earned money as they pay off a better return than other means of investment. Moreover, they encompass a simple methodology; therefore, they are implemented by all types of people.

The interest rate on the fixed deposit is not flexible, as it is a fixed rate. However, it relies on the factor of the period too. For instance, the interest rate will be less if an individual fixes it for one year tenure as compared to a person who fixes it for three years. In the fixed deposits, the plus point is that it runs on a compound interest basis, which furnishes benefits to the depositors. But if the fixed deposits get broken down before meeting the mature cycle, then it is calculated concerning simple interest.

Different types of fixed deposits

There are some lucrative advantages bestowed to senior citizens' fixed deposits, they are as follows:

  • Firstly, senior citizens reap the best benefits of high-interest rates on fixed deposit investments than modest people who approach.
  • Secondly, they get the opportunity to withdraw the invested money based on distinct terms with an optimised rate. For instance, can withdraw monthly, quarterly, yearly or on at the time of maturity too.
  • Thirdly, they can avail themselves of tax concession with no TDS imposed on them, this specification indeed furnishes a huge profit.
  • Lastly, the procedure for senior citizens' fixed deposits has minimal documentation and official work, so this makes it easier for them.

What are the different types of Fixed Deposits?

Normal Fixed Deposits:

  • In this, money gets saved for a fixed tenure but at a more interest rate than a normal saving account.

Tax-saving fixed Deposit:

  • It is compelled by many prerequisites, like the minimum amount deposited should be 1.5 lakh for a minimum fixed tenure of five years.

Cumulative and Non-cumulative Fixed Deposits:

  • In cumulative FD, all lump sum money gets reimbursed once it matures, and in the non-cumulative FD, money gets returned on a monthly or quarterly basis.

Fixed Deposits for Senior Citizens:

  • As the name suggests, this is for people of age 60 or above. They get high-interest rates with nimble tenure. This deposit has many specialities; for illustration, senior citizens can avail of a loan against FD, which can be fruitful in serving their purpose. And if they deposit money for five years, they can save on tax too.


  • It stands for Tax Deductible at Source and is levied on the income of the interest in a fixed deposit. In this aspect, senior citizens have an upper edge; that is, the TDS for senior citizens on FD is deducted from the source of 50000 on interest.

Fixed Deposit Investment Tips: 

Grab special rate offers:

  • Many banks and investment firms open doors for lucrative offers which ensure great returns on Fixed deposits. For instance, they provide a tenure of 333 days, 444 days which imposes high returns.

A sweep-in FD advantage:

  • In this opportunity, an individual can transfer "no in use" money or surplus reserves into an FD account. Furthermore, it grants the merit of the removal of money without wrecking FD.

Senior Citizen Fixed Deposit:

  • Aged personnel can invest via a senior citizen Fixed deposit.

Opening a Fixed deposit account is said to be easy. Still, some essential documents are required for fixed deposits, such as the Aadhar card, PAN card, passport size photo, sensor citizen ID card ( if applicable), and many more, to create transparency. To ease up the process of opening an FD, you can get in touch with the experts at HDFC Sales, as they are proficient in all matters related to opening and managing your FD efficiently. You can also apply online.

HDFC Fixed Deposits Schemes: HDFC is considered as the most lucrative bank in terms of schemas and plans. Some prominent schemes are as follows: regular fixed deposit, overdraft fixed deposit, 5 years plan fixed deposit. These schemes enrich the quality of investment and satisfy the client the most. To get more insight on these visit website.