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Fixed Deposit

About Fixed Deposit

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What is a Fixed Deposit?

Fixed deposit (FD) is one of the safest investment options through which people can earn relatively higher interest in comparison to a regular savings account. Interest is accumulated on the deposited amount over a fixed period of time. The interest rate depends on the type of lenders (public sector, private sector, or small finance banks). Senior citizens are usually offered higher interest rates. In the case of an emergency, you can easily liquidate your FD and get the funds.

The tenures in fixed deposit schemes are flexible. Investors can choose the tenure according to their convenience.

Once the amount has been deposited in at a specific interest rate, it remains unaffected by further changes in interest rates or market fluctuations. Thus, the returns on your deposit are assured.

With fixed deposits, there are several other benefits such as loan against FD. One can avail loans of up to 90 per cent of your deposit amount at very low interest rates. Investing in tax-saving fixed deposits will fetch tax deductions. FD also provides the option for regular income. One can get the interest sum credited as per the requirements on a monthly, quarterly, or annual basis.

Factors to consider before opening FD -

  • Compare various FD interest rates of different banks that help you earn better interest.
  • Review the credibility of the lender by examining the fixed deposit’s safety.
  • Choose a bank that offers good customer service and a hassle-free process for opening an FD.

Latest Updates on Fixed Deposit

RBI leaves repo rate unchanged, FD rates unlikely to move higher for now

The central bank's decision to keep the policy rate at 5.5 per cent, and inflation projected to stay low, means that fixed deposit rates are not likely to be revised upwards

Updated On: 07 Aug 2025 | 5:15 PM IST
Bs_logoRBI leaves repo rate unchanged, FD rates unlikely to move higher for now

Bad news for FDs: Rates to fall sharply as RBI cuts repo rate by 50 bps

RBI cuts repo rate by 50 bps to 5.5%. FD interest rates fall further, prompting investors to consider laddering, hybrid funds, and small savings schemes for better returns

Updated On: 06 Jun 2025 | 4:33 PM IST
Bs_logoBad news for FDs: Rates to fall sharply as RBI cuts repo rate by 50 bps

What are the best fixed deposit rates for senior citizens?

Senior citizens are often loathe to deal with the intricacies of complex financial instruments. In such cases, it might be a good idea to just park their savings in a fixed deposit

Updated On: 05 Jun 2025 | 3:36 PM IST

Up to 9% interest rates: FD rates in may, small fin banks lead

In May 2025, small finance banks are offering the highest FD interest rates, with NorthEast Small Finance Bank leading at 9%. Explore the best rates across small finance, private, public, and foreign

Updated On: 15 May 2025 | 5:15 PM IST

Need to break your fixed deposit early? Here's how to slash penalty costs

Learn how to minimize penalties on premature FD withdrawals by choosing the right bank and smart structuring strategies like laddering, sweep-in, and loans against FDs.

Updated On: 28 Apr 2025 | 4:25 PM IST

How to navigate a market when both equity returns and FDs are declining

Exposure to gold and longer-duration debt, and purchasing equity funds systematically as valuations soften can help investors navigate this phase

Updated On: 20 Apr 2025 | 10:03 PM IST

BoI lowers FD rates, ends 400-day special scheme offering 7.30% interest

Several lenders have revised their fixed deposit plans after central bank cut the repo rate

Updated On: 15 Apr 2025 | 11:12 AM IST

SBI cuts FD rates, reintroduces 'Amrit Vrishti' scheme with lower returns

The highest rate is now 6.90 per cent for deposits of 2 to 3 years for regular customers, and 7.50 per cent for senior citizens for deposits of 5 to 10 years

Updated On: 14 Apr 2025 | 6:51 PM IST

Bank of India cuts interest rates on short and medium-term FDs

The decision came on Saturday (April 12) after the Reserve Bank of India cut the policy repo rate by another 25 bps to 6 per cent

Updated On: 12 Apr 2025 | 7:49 PM IST

RBI rate cut to hit Fixed Deposit returns: What investors can do now

This second cut in three months could affect returns for fixed deposit (FD) holders

Updated On: 09 Apr 2025 | 11:05 AM IST

Stable returns, flexible tenure: Why do you need FDs in your portfolio?

Fixed deposits ensure that the principal amount invested is preserved. Investors can rest assured that they will receive their initial investment back along with accrued interest at maturity

Updated On: 26 Mar 2025 | 1:53 PM IST

Madras HC: FDs, jewellery qualify as property under Senior Citizens Act

In a recent judgement, the Madras High Court held that fixed deposits (FDs) and jewels come under the definition of property under the Senior Citizen Act, 2007

Updated On: 10 Mar 2025 | 4:04 PM IST

DCB Bank cuts FD interest rates; now offers 8% for deposits below Rs 3 Cr

The bank now offers interest rates between 4.25 per cent and 8.50 per cent on FD amounts below Rs 3 crore for senior citizens for tenures ranging from 7 days to 10 years

Updated On: 07 Mar 2025 | 1:01 PM IST

ESFs: Ideal for investors seeking FD-plus returns, low volatility

As of January 31, 2025, ESFs managed assets worth ₹42,161 crore, according to the Association of Mutual Funds in India

Updated On: 06 Mar 2025 | 10:43 PM IST

Fixed deposit in Feb: IndusInd, Ujjivan SFB & 5 other banks cut/hike rates

Stock market crash has renewed focus on fixed deposits, which remain a preferred investment option

Updated On: 28 Feb 2025 | 12:30 PM IST

What are the best fixed deposit rates in the market for you?

If you want a low-risk investment strategy, fixed deposits may be the way to go for you. But remember, the returns will also be commensurately lower

Updated On: 27 Feb 2025 | 12:52 PM IST

Public vs private banks: Who offers best FD rates for senior citizens?

In terms of interest rates, small finance banks and private sector banks tend to offer higher rates compared to their public sector counterparts

Updated On: 21 Feb 2025 | 10:35 AM IST

Best FD rates February 2025: 10 private banks offer 7.5%+ interest

Stock market fluctuations are common, but FDs offer stability, particularly in times of volatility

Updated On: 20 Feb 2025 | 11:01 AM IST

A Beginner's Guide to Fixed Deposits in India

This instrument allows you to earn interest on your idle funds for a set period of time.

Updated On: 19 Feb 2025 | 4:53 PM IST

Shivalik Small Finance Bank cuts FD interest rates to 9.05% from 9.30%

Lender cuts rates by 25 bps, lowering the highest rate to 9.05% from 9.30% for senior citizens on tenures ranging from 12 months and 1 day to less than 18 months

Updated On: 19 Feb 2025 | 11:06 AM IST