In a Fixed Deposit, you put a lump sum in your bank for a fixed tenure at an agreed rate of interest. At the end of the tenure, you receive the amount you have invested plus interest of invested period.
FDs are also called term deposits.
Interest rates on FDs are fixed when you open the deposit and the rate depends on the term that you wish to hold it for. Visit the Bank website to view the latest FD interest rates.
A Fixed Deposit offers guaranteed returns. Unlike market-led investments where returns fluctuate over time, the returns on an FD are fixed when you open the account. Even if interest rates fall after you open a Fixed Deposit, you will continue to receive the interest decided at the start. FDs are considered much safer than investments in other assets like equity.
Return on investment
Your return on an FD will depend on the interest rate and the type of deposit you choose. You can opt for a monthly / quarterly / Half Yearly / Yearly pay-out of interest or the reinvestment option, which will give you the benefit of compounding.
Bank offers Fixed Deposit in flexible tenures ranging from 7 days to 3 years.
NOTE : Deposits upto Rs 5,00,000/- are insured with DICGC