1. Fixed Deposit
By:
Abhishek Kumar Singh

2. Duration For FD
They can be held for short, medium or long-terms i.e. for as
low as a couple of weeks to as long as a decade.
30 days
60 days
90 days
120 days
6 months
9 months
1 year
1 year 6 months
2 years
3 years
4 years
5 years

3. Fixed deposit (FD)
It is a financial instrument where a sum of money given to a bank,
financial institution or company whereby the receiving entity pays
interest at a specified percentage for the time duration of the deposit.
The rate of interest paid for fixed deposit vary according to amount,
period and from bank to bank.
At the end of the time period of the deposit the amount that is
originally given is returned to the investor.

4. How to Invest?
You would need to have a savings account with the bank in which you
want to open FD
You would require id proof and address proof and go to bank in which we
want to make FD
You will have to fill a form for opening FD
You can open FD by paying cash or by paying through your account in the
same bank.
Or we can do term deposit online by webpage of respective banks

5. Benefits:
Considerably more
interest than it is
earned on any other
forms of savings
accounts.
Lower risk as compared to risk
involved in investing in stocks.
When you invest in stocks,
there is a chance of you losing
the initial value of the money
you invested. Fixed deposits
involve a very low risk of losing
your investment.
Flexibility in deciding
the amount, tenure,
interest payment
and maturity of your
deposit
Drawbacks:
The fixed interest rates
which are given on fixed
deposits do not give you
any protection against
inflation.
One of the biggest drawbacks
of having a huge part of your
savings in a fixed deposit
account is that you cannot
withdraw funds during the
tenure. There can only be
drawback which would
require to break the policy.

6. Taxation
Fixed deposits also offer income tax and wealth tax benefits.
10 % TDS is deducted by the bank on FDs if interest paid to a
customer at any branch exceeds Rs.10000 in a financial year and
thereafter according to the deposit-holders applicable tax-bracket.
Bank issue form 16 A every quarter to the customer, as a receipt
for tax deducted at source.

7. Limits for FD

8. Withdrawal
Most of the banks charge premature withdrawal
penalty in the form of a 0. 5-1% lower interest
on customers looking to close their Fixed
Deposit
Interest rates for premature withdrawals of
FDs= Interest rate applicable for actual period of
FD as per the prevalent at the time of
investment – 1%

9. Target Customers
Basically all the
people who
earn invest in FD
Clients With
lump sum
money
Senior citizens

10. Nearest product of FD is Recurring
Deposits