One of the most secure and safest investments is a fixed deposit with a bank. An investor deposits a lump sum of money with the bank for a certain period and will be given a pre-defined interest rate. The investor receives its money once the bank’s deposit gets matured.
Non-banking financial companies (NBFCs) also offer fixed deposit products. With a maximum interest rate, these companies are one of India’s leading providers of this type of financial product. Its customers can choose a tenure of up to five years and can make investments starting from the lowest amount possible.
Fixed Deposit Interest Rates
It is a safe investment that offers high-interest rates and benefits senior citizens. The tenure of the account can vary from 7 days to 10 years. Different banks offer varying interest rates.
These types of deposits are also known as term deposits or time deposits. People can invest a fixed amount for a specific period, which is maturity tenure. On the maturity of the product, the financial institutions pay the principal and interest on the accumulated interest.
Types of Fixed Deposits
Cumulative refers to a type of deposit usually held for a fixed period. The interest amount is computed at the end of the deposit term and paid at the end of the period.
The interest earned on a non-cumulative fixed deposit scheme is payable regularly per the terms of the deposit agreement. It can be paid either monthly, quarterly, or annually.
FD Calculator
Total Interest:
₹44,994
Maturity Amount:
₹144,994
The interest and the amount that an investor will receive on their investment at the end of their term can be determined with the help of an online fixed-deposit calculator. It does all the hard work for you and provides you with accurate figures at the click of a button. It can help you make an informed decision regarding the interest rates and maturity amount of your bank’s deposits.
You can also use the fixed deposit calculator to calculate the return and deposit interest rates on your investment. It allows an investor to estimate the maturity amount of their investment. With the use of this tool, an investor can easily estimate the interest income that they’ll receive from their investment. The calculation of the investment amount, the prevailing interest rate, and the tenure of the financial instrument are all taken into account to arrive at the output.
The fixed deposit calculators don’t provide an estimate of the wealth that you’ll gain from the investment. It only takes into account the inputs that are provided. You can also use a simple online calculator to estimate the maturity of your deposit.
Eligibility and Documents Required
Individuals and entities in India are eligible to open a Financial Deposit Account (FDA). These include non-resident Indians (NRIs), senior citizens, and joint investors. Various documents are required to establish an account.
To open an account, an individual or entity should provide valid proof of identity, such as a PAN card, voter ID, photo ration card, driving license, or an Aadhaar card. Besides this, other documents such as bank statements, utility bills, and a certificate of address are also required.