You must have heard the name of FD or fixed deposit account, but do you know what is a fixed deposit account and what are its benefits. In this post, we will know that how fixed deposit account (FD) is different from regular savings account and current account and how much interest or interest do we get on the amount deposited in it.
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What is fixed deposit account?
What is Fixed Deposit Account If we understand it in simple words, then we will say that when we deposit a fixed amount in a bank for a fixed time, it is called Fixed Deposit or Term Deposit. And this type of account is called Fixed Deposit Account. On the amount deposited in FD, we get more interest than the amount deposited in the savings bank account. Where the savings bank interest rate ranges from 2 to 4 percent, the interest rate in fixed deposits ranges from 5 to 7 percent. You can get FD done for a period of a few months to ten years, in which you are given the entire amount along with interest on the completion of the FD period.
What are the Benefits of getting Fixed Deposit (FD)?
- In Fixed Deposit Account, you are paid more interest than Savings and Recurring Deposit account.
- Fixed Deposit is a risk-free investment in which your money is completely safe.
- Fixed deposits can be broken midway (before the maturity) when the money is required.
- Senior citizens get a little more on FD accounts.
- On completion of FD, you can easily renew it and earn more profit.
Where can I get Fixed Deposit?
All private sector, public sector banks and small finance banks allow people to open fixed deposit accounts. If you have a savings or current account in the bank, then you can easily make a fixed deposit in the same bank.
Documents required to open FD account –
- Passport size latest photograph.
- Proof of Identity – Aadhar Card, Pan Card, Voter Card, Driving License, Passport Other.
- Address Proof – Electricity or water bill, bank passbook other.
How to get Fixed Deposit Form?
You will easily get the form for opening a fixed deposit account in the bank branch, if you want, you can also download the online form (if available) by visiting the official website of that bank. Your FD account will be opened by filling the form and submitting it with all the documents. You will have to deposit the amount you want to make an FD in a lump sum.
What are the types of FD?
- Normal fixed deposit
- Tax Savings Fixed Deposit
- Senior Citizen Fixed Deposit
- Flexi Fixed Deposit
Different banks have different rates of interest on fixed deposits. Private banks and small finance banks are offering more interest than government banks. Senior citizens also get some additional interest rate. The interest rate depends on the amount of FD you are getting. For interest rate or any other information on FD, you can contact your bank branch or you can also collect information by searching online.
This was the information, what is fixed deposit and what are the benefits to you of getting FD, hope this information must have been of some use to you.
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