Fixed Deposits

Fixed income securities are crucial part of an investment Portfolio. Fixed deposits represent investments that provide income largely in the form of fixed periodic payments and repayment of the increased amount at the time of maturity. Along with this, it helps in increasing your returns without even exceeding your risks.

Eligibility and documentation required: A valid identity proof and an address proof are required by the depositor for opening a fixed deposit account.

Here we have managed to showcase some facts about fixed deposits, which your relationship manager might hide from you:

FACT 1

Akin to banks, companies also offer fixed deposits

FACT 2

Bank deposits are more secured than company fixed deposits

FACT 3

Avoid involving with those who promises to offer you high rate of interest

FACT 4

Higher interest frequency not only guarantees higher returns every time

FACT 5

Due to any reasons if you withdraw prematurely, your deposits will bring lower than promised returns

FACT 6

Penalty as well as premature withdrawals can be negotiated

FACT 7

Interest on fixed deposits will be charged before it is paid out to you

FACT 8

Not all 5 years deposits guarantee you to enjoy section 80C income tax exemption

Fact 9

You can raise a loan or overdraft facility against your FD

Fact 10

Sweep- in excess cash deposit facility from your savings account into fixed deposits

Are you planning to save? Then this will help you compare rates among the FD rates of various banks when you decide. (Note: Interest rates in % per annum I Rates as on May 3, 2013). Click here to see which bank is paying higher interest rate.