What are the different types of Fixed Deposits?

Banks and Non-Banking Finance Companies offer different kinds of Fixed Deposits, to suit the investment requirements of different customers. Here’s a list of the different fixed deposit types offered.

Regular FD: Deposit your money for a fixed tenor, ranging from 1 week to 10 years.The rate of interest is predetermined, but higher than the savings account.

Tax-saving FD: The principal amount of the FD gets tax exemption of up to Rs.1.5 lakh in a year.Your investment is locked for a period of five years and funds can’t be withdrawn before the maturity date.

Senior Citizens FD: This FD scheme is for people above the age of 60 years, who can earn an additional interest rate over regular FD.