Someone has said, if you want to become successful in investment, you need two things, one is risk-taking and the other is patience. From 1995 to 1997, banks offered the highest interest rates on term deposits of 12% – 13% and, therefore, it was the best fixed deposit scheme of the time which not only gave huge returns but also proved to be the safest investment in India compared to other investment options. But then in 2003-2004 the interest rate went down to a low of 5.25%. And now again they have risen to 8% – 9%. For detailed knowledge about a fixed deposit, how to open fixed deposit account?, how does a Fixed Deposit work? benefits of fd, etc are explained in the below article please go and check out.
what is a fixed deposit?
Fixed deposit is an investment where you have to invest your savings by banks and NBFCs (non banking finance companies). It is a great way of investment that offers good returns with maximum safety.In a fixed deposit, at your convenience, you have to choose a period and deposit a lump sum, your deposit starts earning interest on completion of the pre-determined period. Upon maturity, you can withdraw your invested deposit and compound interest rate. In India, there are various best fixed deposit schemes are available that give a high interest rate.
How to do fixed deposit in sbi?
For sbi account holder, sbi provides net banking platform to open e-fixed deposit account, where you can choose different best fixed deposit schemes from sbi portal and open your fixed deposit account from state bank of India bank. There are some steps you have to follow :
- Go to sbi website and login & fill the personal details
- Come to homepage
- Click on fixed “Deposit scheme” option & go to “Term Deposit”
- And then on the top menu click on “e-fixed deposit”
- Then, Choose type of fd that you want & click proceed
- Then, for payment choose the account from money has to debited
- Choose Fd principle value and in ‘amount’ column fill the same
- If you are above 60 tick “Senior citizon” tab
- Select a non cumulative / TDR or cumulative STDR deposit
- Select date of maturity or internet payout frequency accordingly
- Select instructions of maturity & accept terms and conditions after reading.
- Click on submit button and open your FD successfully.
Different types of fixed deposit in sbi:
SBI offers types of best fixed deposit schemes that gives flexible tenure options with high interest rate.
- SBIs Tax Savings Account – Under section 80C of the Income Tax Act, sbi tax saving scheme offers tax benefits under Rs. 1.5 lakh. Indian residents or families having income tax Permanent Account Number (PAN) are eligible for sbi tax-saving benefits where you can deposit a minimum of Rs. 1000 or maximum deposit should not increase Rs. 1.5 lakh in a year.
- SBI’s Multi Option Deposit account – In this, the saving or current account is linked to fixed deposit account. In multi option deposit scheme, as per the individual need you can withdraw multiple of Rs. 1000 and you can earn a fixed interest rate on the remaining or balanced amount which is applicable at the time of the initial deposit.
- SBIs Reinvestment Deposit account – In SBIs reinvestment plan, the interest is paid out at the time of maturity. The minimum amount of investment is Rs.1000 and the maximum investment has no limitation.
- SBI’s annuity deposit account – The SBI enables depositors to receive equated monthly installments (EMI) and pay one time lump sum amount. For this scheme there is no maximum limit and you can deposit minimum of Rs.25000.
- SBI’s Flexi Deposit account – In SBIs flexi deposit scheme, the user can decide the amount of installment within the annual sum is defined. The minimum deposit is Rs.5000 and the maximum deposit is Rs.50000.
How to open fixed deposit in hdfc?
HDFC is one of the leading brands in the banking sector, which provides multiple facilities in loans, saving or current accounts, best fixed deposit scheme, etc. If you are hdfc bank account holder then you can easily open your FD account by visiting the nearest branch or through the net banking platform. Here are steps for online opening of fixed deposit account:
- Log in to HDFC net baking portal and enter the username and password provided by banks
- In ‘Request’ section under ‘Account’ option go to ‘Open fixed deposit’ tab
- Fill all your details in respective columns such as deposit amount, tenure range, etc & click ‘Continue’
- Then, verify your details & click ‘Confirm’
- After downloaded the FD advice, the FD confirmation message will display.
Advantages and disadvantages of fixed deposit account
Fixed deposit is a great way to start the investment for future with maximum of returns and safety.
Benefits of FDs
- Safe Investment
As compared to other investments fixed deposit is one of the safest investments which gives guaranteed high returns. Fixed deposit investments have low risk factors than shares, mutual fund investments.
- Flexible Tenure
In fixed deposit, the decision of depositor is matter that decides the tenure for scheme. It can be flexible whether to withdraw FD or to extend it for same period of time.
- Loan against FD
There are many banks that lend up to 90% – 95% for term deposits and now it has become very easy to get loans from banks that make fds a reliable investment.
Disadvantages of FD
You cannot withdraw your money or breaks your Fd before maturity otherwise, it will charge you a penalty which also reduces interest on total investment.
- Funds Lock
In fixed deposit, the invested funds or money are blocked for a particular period or tenure, you can not withdraw till completion of maturity.
- Tax deduction
TDS deducted 10% of tax on the interest if you earned more than Rs. 10000 and for senior citizens the minimum amount is Rs. 50000.
Fixed deposit is an old and great way of investment where you can get high returns as per your tenure or plan with maximum safety. Multiple banks offer best fixed deposit scheme, where they can give loan facilities, flexible tenure, security, etc. And this is the best option of investment for people who are not willing to take a risk.