Fixed Deposit

Fixed Deposit

Fixed Deposits (FDs) are one of the most trusted and time-tested ways to grow your savings. Known for their safety and guaranteed returns, FDs are ideal for those looking to invest without market risk.

Why Choose Fixed Deposits?

• Stable, Assured Returns: Enjoy predictable earnings, free from market fluctuations.
• Low Risk, High Peace of Mind: A reliable option to build wealth while protecting your capital.
• Attractive Interest Rates: Company FDs often offer better returns than traditional bank deposits.

Flexible Payout Options:

• Choose how often you'd like to receive your interest:
• On Maturity
• Yearly
• Half-Yearly
• Quarterly
• Monthly

Customised Tenure Options:

• Select a time frame that suits your financial needs and goals.

Additional Benefits

• Non-Transferable and Secure – FD receipts cannot be transferred or misused if lost or stolen.
• Option for Premature Withdrawal – Withdraw your deposit before maturity if needed, subject to a small penalty.
• Risk Diversification – Spread your investment across various companies and industries to minimise risk.
• Plenty of Investment Choices – With several companies offering FDs, you have the freedom to renew or reshuffle based on performance and returns.

Postal Schemes

Monthly Income Scheme (MIS)
Secure and Reliable Monthly Income – A dependable way to receive fixed income every month.
Ideal for Senior Citizens and High-Value Investors – Especially beneficial for retirees or individuals with substantial funds to invest.
Attractive Interest Rate – Earn interest at 6.6% per annum, effective from April 1, 2020.
Fixed Maturity Period – Investment tenure of 5 years.
Convenient Auto-Credit – Monthly income automatically credited to your Savings Bank (SB) account.

Recurring Deposit (RD)

Account can be opened by a single adult or jointly by two adults.
Advance deposits are eligible for rebate benefits.
Up to four defaults in monthly deposits are permitted during the tenure.
Interest rate applicable is 5.8% per annum.
Defaulted deposits can be regularized within a period of two months.
Facility for partial withdrawal is available under specified conditions.
Premature closure of the account is allowed after completion of three years.
Pay Roll Savings Scheme facility is available for employees of participating establishments.

Time Deposit

An individual can open an account, either singly or jointly with one other adult.
Group accounts, institutional accounts, and miscellaneous accounts are not permitted.
Investments from trusts, regimental funds, or welfare funds are not allowed.
Time Deposit (TD) accounts are available for tenures of 1 year, 2 years, 3 years, and 5 years.
For TD accounts opened on or after December 1, 2011, if the deposit is withdrawn after 6 months but before completing one year, simple interest will be paid at the rate applicable to the Post Office Savings Account at the time of withdrawal.
If a 2-year, 3-year, or 5-year TD account is closed prematurely after completing one year, interest will be paid at a rate that is 1% lower than the rate applicable for the actual period for which the deposit was held, as per Rule 7 of the Post Office Time Deposit Rules.
Interest rates (compounded quarterly) effective from April 1, 2020, are:
1 year: 5.5%, 2 years: 5.5%, 3 years: 5.5%, 5 years: 6.7%
Investments in a 5-year TD account qualify for tax benefits under Section 80C of the Income Tax Act, 1961, effective from April 1, 2007.

Senior Citizens Savings Scheme (SCSS)

A safe and rewarding investment option designed especially for senior citizens.
Open to individuals aged 60 and above. Retirees between 55 and 60 years can also apply within three months of retirement under VRS or special schemes.
Defence retirees can apply regardless of age, subject to certain conditions.
An account can be opened individually or jointly with a spouse.
NRIs and Hindu Undivided Families (HUFs) are not eligible.
Multiple accounts can be opened in multiples of ₹1,000, up to a maximum of ₹15 lakh.
Lock-in period of 5 years, with an option to extend for another 3 years.
Premature closure is allowed after 1 year, with a small deduction (1.5% if closed after 1 year, 1% after 2 years).
In case of the depositor’s death, the account is closed and the full amount with interest is paid to the nominee without deduction.
Earn interest at 7.4% per annum, payable quarterly. Interest can be auto-credited to a savings account in the same post office.
Post-maturity interest is paid at the savings account rate until the amount is withdrawn.
The nomination facility is available.
Investments qualify for tax benefits under Section 80C of the Income Tax Act.

15 Year Public Provident Fund (PPF)

A reliable and tax-saving investment option for long-term financial planning.
Suitable for both salaried and self-employed individuals looking to grow their savings safely over time.
Not available for Non-Resident Indians (NRIs) as per eligibility guidelines.
You can invest up to ₹1.5 lakh per year and enjoy tax benefits under Section 80C of the Income Tax Act.
Earn 7.1% annual interest, compounded yearly (rate effective from April 1, 2020).
Need funds in between? You can take a loan against your balance from the 3rd to the 5th financial year at just 2% interest.
Partial withdrawals are allowed starting from the 6th financial year, offering flexibility when needed.
Your savings are fully protected — the account cannot be attached by a court order.
Investments cannot be made on behalf of a Hindu Undivided Family (HUF) or an Association of Persons.

National Savings Certificate (NSC)

A safe and tax-saving investment option, ideal for salaried individuals, business professionals, and government employees who file income tax returns.
There’s no upper limit on how much you can invest.
Interest earned is not subject to tax deduction at source (TDS).
Investments qualify for tax benefits under Section 80C of the Income Tax Act.
Interest is compounded annually and is considered reinvested, also eligible for Section 80C benefits.
Annual investment of up to ₹1,00,000 qualifies for tax rebate under Section 80C.
NSC certificates can be used as collateral to secure loans from banks.
Trusts and Hindu Undivided Families (HUFs) are not permitted to invest in this scheme.
A single-holder certificate can be purchased by an adult for themselves or on behalf of a minor.
Earn a fixed return with an interest rate of 6.8% per annum (compounded annually).
Certificates can be transferred from one person to another, but only once between issue and maturity.