Bank FD
Bank FDs are investment schemes offered by Banks wherein you invest an amount for a fixed period and a predetermined interest rate.
The period of investment or tenure can range from 7 days up to 10 years.
Fixed Deposits
High interest safety wings for your savings while it is at rest.
What is Fixed Deposit?
Fixed Deposits (FDs) are a relatively safe investment instrument known for offering predetermined income. Invest your funds for a fixed term and earn returns at a fixed interest rate.
Discover a world full of financial possibilities with reliable fixed deposits and explore how fixed-income options on Digifinn can complement your savings goals.
Top Issuers
PNB Housing Finance
Kotak Mahindra Bank
HDFC
Axis Bank
LIC Housing Finance
ICICI Home Finance
Shriram Transport Finance
Citibank
Advantages of Investing in Fixed Deposits (FDs)
- For fixed interest income
- For security reasons
- For liquidity
- For better returns
Fixed Deposits Interest Rates
| Providers | Tenure | FD Interest Rates | Sr. Citizens FD Interest Rates |
|---|---|---|---|
| PNB Housing Finance Limited | 12 months to 120 months | 7.00% - 7.40% | 7.25% - 7.65% |
| Kotak Mahindra Bank | 07 Days to 10 Years | 2.50% - 6.10% | 3.00% - 6.60% |
| HDFC | 07 Days to 10 Years | 3.00% - 6.20% | 3.50% - 6.95% |
| Bajaj Finance Private Limited | 12 Months to 60 Months | 6.55% - 7.40% | 6.80% - 7.65% |
| State Bank of India | 7 days to 10 years | 2.90% - 5.85% | 3.40% - 6.65% |
The fixed deposits interest rate varies on factors such as Government policies, economic conditions and liquidity conditions in the market. Rates shown are indicative and may change; always verify current rates with the issuer before investing.
Source: Leading Companies Websites as on 27 October 2022
Learn More About Fixed Deposits
A fixed deposit or an FD is an investment instrument that banks and non-banking financial companies (NBFCs) offer, where a fixed amount of money is invested for a fixed period of time at a fixed rate of interest.
The word fixed being the operative word — when a fixed amount of money is invested for a fixed period of time with a fixed rate of interest in a bank or a financial institution, it becomes a fixed deposit.
The investor voluntarily instructs the bank or financial institution to lock away their funds in a fixed deposit for a determinate period of time. The deposited money then earns fixed interest which does not change until maturity.
Fixed deposits are available for as low as 7 days and as high as 10 years. You can estimate the interest you may earn using Digifinn’s FD calculator.
Anyone regardless of their age and income can typically invest in a fixed deposit, subject to the issuer’s eligibility rules and KYC requirements.
Opening an FD can be paperless and seamless on digital platforms. Digifinn helps you explore fixed-income options and use tools such as the FD calculator to plan your investment.
Type of Fixed Deposits
Based on the issuer, we could classify FD in two types
Corporate FD
Fixed Deposits are one of India's favourite investment destinations. Did you know that many corporates also issue Fixed Deposits? They are regulated under the Companies Act.
Corporate FDs may offer higher return potential, variety of tenures, and liquidity features — always review credit risk and offer terms carefully.
Benefits of Fixed Deposits
Assured Return
Earn a steady return on your fixed deposit at a predetermined interest rate.
Benefits of Compounding
Enjoy higher returns by earning interest on interest, depending on payout option.
Variety of Choices
Minimum investment can be as low as Rs. 500 with some issuers, subject to product terms.
Safety
Bank FDs are generally considered relatively safe for capital preservation; corporate FDs carry credit risk.
No Need to Open Savings Bank Account
Open your FD completely digitally with eligible issuers and platforms, subject to KYC.
Higher Rates for Senior Citizens
Many issuers offer higher FD interest rates for senior citizens.
Role FD Can Play in One Portfolio
Balance in your portfolio
Fixed deposits can provide balance in your portfolio. While market-linked instruments such as equities and mutual funds carry an element of risk, FDs are typically more stable and provide a predetermined return over a fixed period of time.
Net value of the portfolio remains positive
During market lows, the returns from FDs can help support the net value of your portfolio, as interest earned from FDs may partly offset losses that market-linked investments may have incurred — outcomes are not guaranteed.
Suitable for short-term goals
While equities can fulfill long-term financial goals, FDs are often more suitable for short-term goals. They can also be a wise choice for goals where you prefer not to risk the capital investment.
How to Explore Fixed Income Options on Digifinn
Use Digifinn’s FD calculator to estimate interest for different tenures and payout options, then explore bond and debt products that may suit your goals after completing KYC.
- Try the FD Calculator to estimate returns
- Complete your KYC on Digifinn
- Explore available fixed-income products after reviewing yield, tenure, and offer details