For generations, Indian investors have relied on fixed deposit investments as the first choice as an investment tool. It is obvious as it offers the maximum investment safety and can produce a fair return. Especially if you are saving for retirement, nothing can match the fixed Deposit’s worthiness. It deserves special mention that these investment tools offer ample liquidity, as you can withdraw the corpus partially or fully. Moreover, you can avail of secured loans at the most competitive interest rates by pledging the fixed deposit certificate. Here are the most popular fixed deposit schemes for you.
Standard Fixed Deposit Plans
Standard Fixed Deposit is the most conventional fixed deposit scheme you can open with banks or Non-banking finance companies. Here, the depositor makes the Deposit for a specific tenure, ranging between 7 days and ten years. Depositors earn interest at a predetermined rate based on the investment tenure the depositor chooses. Standard FD accounts produce meaningfully higher returns compared with savings accounts.
Tax-exemption FD scheme
These schemes are meant to optimise tax exemption. As of date, investors investing in tax-exemption FD schemes can claim tax rebates to the maximum limit of 1.5 Lakhs per financial year. You can open this account with any bank, but you can make one lump-sum contribution. The investment tenure is of 5 years, in between which depositors cannot withdraw the fund.
Special Fixed Deposit
This scheme is almost similar to the standard fixed deposit accounts, except that you qualify for higher returns if you don’t withdraw any amount before the tenure matures. Investors should select the investment tenure to the maximum limit of 10 years at a go.
It is one of the most popular FD schemes as it offers one of the best rates. Depositors can pledge the fixed despot certificate to avail of cash loans to meet their exacting cash needs.
Cumulative growth Fixed Deposit
It is a standard fixed deposit scheme that is best suitable for investors whose eyes are on financial endowment within a fair time. You can deposit the money for ten years at a go, and you cannot withdraw the money between the tenure. On completion of the lock-in, you get back the fund, the corpus, and the interest earned. Please note that the interest earned from this investment qualifies for an income tax deduction as per the applicable rate.
Regular Income Fixed deposit
It is the most suitable investment scheme for individuals who need a regular income as it is risk-free and regularly fetches considerable returns. You can opt for monthly or quarterly intervals for the interest, thus supporting your daily expenses. Elderly individuals are the most frequent investors in these schemes.
Flexi Fixed Deposit account
It is a unique fixed deposit scheme that enables you to maintain the right balance between your savings and fixed deposit accounts. You can start the investment with any amount and link it to your savings account. Once the savings account balance crosses a certain threshold, the excess amount automatically transfers to the fixed deposit account. Thus, you earn interest from the savings and the fixed deposit account simultaneously. You can make money from the fixed deposit account anytime to support exigent cash needs.
Senior Citizen fixed deposit scheme.
As the name implies, these accounts are meant for investors with a minimum age of 60. In these schemes, the investor gets additional interest over the prevailing rates and enjoys greater flexibility about the investment plan.
Corporate Fixed Deposit accounts
Here the investor makes the Deposit with corporate companies and non-banking financial corporations for a fixed tenure. They qualify for interest at a predetermined rate. Investors appreciate the CD schemes as it fetches significantly higher returns than what they get from the traditional FDs with banks and NBFCs. But the key is to select a reliable company with a strong financial foundation, so you don’t risk the corpus over significant risk.