The Fixed Deposit is an investment scheme that has been trusted by most traditional Indian families. Despite a plethora of other high-return investments options available, as per a SEBI survey in 2019, 95% of the Indian families preferred bank FDs. The biggest reason for this is the guaranteed returns. The scheme is available with varied tenure options and features make it a favored investment option.
Normal Fixed Deposit
Here, the money is kept with the bank for a fixed tenure which may range from 7 days to 10 years. The interest rate offered in normal fixed deposits is higher than the interest offered for keeping money in the normal savings account.
Tax-Saving Fixed Deposits
If you are looking for tax-saving schemes, you can opt for tax-saving fixed deposits, which are one of the safest investment options. The tax-saving fixed deposit gets tax exemption for up to Rs 1.5 Lakh in a year as per Section 80C of the Income Tax Act. The lock-in period of the tax-saving deposit is 5 years. Be it any financial emergencies, you cannot break the tax-saving fixed deposit. Here in this scheme, you can make only a one-time lump sum deposit.
Senior Citizen Fixed Deposits
It is one of the best and safer investment options for senior citizens. The USP of senior citizen savings deposits is flexible tenure and special interest rates. Senior citizens are mainly offered two types of deposits: cumulative fixed deposits and non-cumulative fixed deposits.
In FD cumulative schemes, interest is compounded each quarter or year but credited into the account of the investor when FD gets matured. It is mostly preferred by those who are investing to grow their savings.
In FD non-cumulative schemes, interest is given to the fixed deposit holder monthly or quarterly. This scheme is preferred by those who are dependent on interest income to meet their monthly expenses. It is the best financial bet for pensioners or super senior citizens above the age of 80 years.
Flexi Fixed Deposits
These fixed deposits are linked to the bank's accounts. Under this scheme, money keeps on floating between the savings and fixed deposit account as per the financial requirement of the investor.
The following entities are eligible to open a Fixed Deposit account in India:
Benefits of Fixed deposit scheme
Above, we have discussed the fixed deposit current interest rate of the top banks. If you are looking for the best of the corporate deposits, check for Shriram City cumulative and non-cumulative fixed deposit schemes that come with high credit quality, rated MAA++ by ICRA.
Under this scheme, the interest earned is compounded along with the principal for a fixed tenure. Here, the interest is paid once and not in installments. The Shriram City invites investment only in multiples of Rs 1000. The minimum amount you can invest is Rs 5000.
The Shriram City fixed deposit interest rate is credited to the fixed deposit holder’s account quarterly, monthly, annually, and half-yearly. This option is designed to offer convenience to senior citizens who are looking for income at regular intervals. For this too, Shriram City invites investment only in multiples of Rs 1000. The minimum amount you can invest is Rs 5000.
The best part about investing in Shriram City fixed deposit scheme is that the FD calculator lets you calculate the interest earned at the end of tenure to help the investor in making the right sound financial decisions. The best part about investing in Shriram fixed deposit schemes is that the interest is compounded monthly.
Apply for Shriram City Union Finance FDs now. It is one of the best corporate deposits available at an interest rate of 7.75% per annum, and for a senior citizen, it is 8.05%.
Grow your savings with Shriram City: your one and only financial friend.