Introducing

Fixed Deposits

on altGraaf app

A fixed deposit lets you invest a lump sum for a fixed tenure at a guaranteed interest rate. You earn interest on your deposit, which compounds over time, and you receive both the principal and accumulated interest at maturity. Banks and financial institutions offer FDs as a low-risk investment option, making them ideal for achieving financial goals with certainty.

Even though there are a lot of other options in the market, FDs offer you guaranteed returns with lower risk. They preserve your capital, offer liquidity and predictable interest, and balance market-linked investments. Since they might not always beat inflation, you can just as conveniently use FDs for short-term goals or building emergency funds. For growth, you can diversify with some higher-yield options, but it is always a smart idea to balance your portfolio’s risk with FDs.

Providers offer various FD types, like standard FDs with fixed returns, tax-saving FDs qualifying for Section 80C deductions, and senior citizen FDs, granting higher interest rates. Flexi FDs link to your savings account for automatic investments, while NRI FDs cater to non-resident Indians. You can choose the type that aligns with your financial objectives.

Fixed deposits come with tenures from 7 days to 10 years. Short-term FDs provide liquidity for immediate needs, while long-term FDs maximize returns through compounding. You should select a comfortable tenure that matches your financial goals.

You can open an FD account as long as you are a citizen of India (resident or non-resident), any company, partnership firm, business, senior citizen or minor etc. You will need some basic documents like proof of identity, proof of address, and proof of date of birth. Please note that the detailed process and documentation can differ for different providers.