Fixed Deposit Savings Account: A Comprehensive Guide

A fixed deposit savings account is a type of savings account that earns a fixed interest rate over a specified period of time.

It's a low-risk investment option that can provide a stable source of income.

The interest rate on a fixed deposit savings account can range from 2% to 8% per annum, depending on the bank and the term of the deposit.

You can typically choose from a variety of term lengths, including 6 months, 1 year, 2 years, and 5 years.

A fixed deposit savings account is a great option for those who want to save money without tying it up for too long.

A fixed deposit savings account is a type of savings account that earns interest over a fixed period of time. You can choose from various types of FDs, including Monthly Payout, Standalone, Regular, Tax Saver, Money Multiplier, and Traditional Fixed Deposit.

Some banks, like ICICI Bank, offer a limited number of FD types, with ICICI Bank offering two main types: Traditional Fixed Deposit and Cumulative Fixed Deposit. Traditional Fixed Deposit allows you to opt for a monthly or quarterly payout, while Cumulative Fixed Deposit pays out a lump sum amount after maturity.

You can choose the payout frequency that suits your needs, whether it's monthly or quarterly. This way, you can receive regular interest payments without having to wait for the full term of the FD.

With a fixed deposit savings account, you can enjoy a range of benefits that make it a smart choice for your savings.

You can avail loans against your FDs up to 80 to 90 percent of the value of deposits, which can be a big help in times of need.

Investing in a fixed deposit earns you a higher interest rate than depositing money in a saving account, making it a great way to grow your savings over time.

Here are some key features of Tax Saver FDs:

Tax Saver Fixed Deposits offer a great way to save taxes, and here's how:

You can save up to ₹1.5 Lakh under Section 80C of the Income Tax Act by investing in a Tax Saver FD.

Investing a small amount of ₹10,000 for a fixed tenure of 5 years is a good starting point, and you can choose from flexible interest payout options.

Interest earned on a Tax Saver FD is completely non-taxable, which is a huge bonus.

Here's a quick rundown of the key features:

To avoid TDS, you can submit a Form 15 G (if you're below 60 years of age) or Form 15 H (if you're above 60 years of age) to the bank when starting the FD and at the start of every financial year.

One of the most attractive features of fixed deposits is that they offer a risk-free investment option.

You can avail loans against your FDs up to 80 to 90 percent of the value of your deposits, which can be a big help in case of emergencies.

Fixed deposits are a great way to earn higher interest rates than you would with a saving account.

Investing in a fixed deposit is a stress-free experience, as market conditions and economic changes won't affect your returns.

FD returns are assured, which means you can rely on them to grow your money over time.

Here are some key benefits of fixed deposits:

To open a fixed deposit account, you'll need a few basic requirements. You'll need a savings account with the bank you're opening the FD with, as seen with DBS Bank which requires a DBS Bank Savings Account.

The minimum deposit required varies by bank, with ICICI Bank requiring an investment amount equal to or greater than ₹10,000 and Axis Bank requiring ₹5,000.

You'll also need to have your Aadhaar card and Permanent Account Number (PAN) handy when opening the account, as required by DBS Bank.

Here's a quick rundown of the minimum deposit requirements for some popular banks:

For domestic customers, you can open a bank account in just 10 minutes, with some banks offering instant account opening. You can also apply for an account online or through the bank's mobile app.

In India, non-resident Indians (NRIs) can open a bank account in their home country, and some banks even offer online account opening services. You'll need to provide a valid passport, visa, and proof of address.

Domestic customers can choose from a range of account types, including savings, current, and fixed deposit accounts. Each type of account comes with its own set of features and benefits. Savings accounts typically offer a higher interest rate than current accounts.

For bulk deposits, you'll need to deposit at least INR 3 Crore. The interest rates for bulk fixed deposits are effective from 6th January 2025.

The interest rates for bulk deposits are the same across different tenure ranges, ranging from 6.75% to 8.25% per annum. You can deposit for a period as short as 7-14 days or as long as 10 years, and the interest rates remain the same.

Here's a breakdown of the interest rates for different tenure ranges:

Interest is computed based on the actual number of days in a year, and the tenor of the deposit is calculated in number of days.

If you're looking for a standalone account option, you may want to consider the Standalone Fixed Deposit - Without Savings Account. This account requires a minimum amount of ₹10,000 and a minimum tenure of 6 months.

You can complete the entire process digitally, which is convenient and saves time. Instant KYC is also available, making it a hassle-free experience.

One of the best things about this account is that you don't need to open a Savings Account to get started. Additionally, you won't need to make a trip to the bank, as everything can be done online.

Premature withdrawal is an option, which can be helpful in certain situations. This account also offers an attractive rate of return, making it a great choice for those looking to grow their savings.

Here are the key benefits of the Standalone Fixed Deposit - Without Savings Account:

You can start a Digital Savings Account with Axis Bank, which offers digital convenience.

With Axis Bank, you can open a Digital Savings Account in just a few minutes.

In fact, the Axis Bank website claims that you can start an instant FD in just 7 minutes with a video KYC.

To open a Fixed Deposit, you'll need some essential documents handy.

The minimum deposit required to open an Axis Bank Fixed Deposit in India is ₹5000, allowing you to start investing in a Fixed Deposit with a relatively small amount.

DBS Bank's online account opening process is paperless, requiring no signature.

To open an online Fixed Deposit, you'll need a DBS Bank Savings Account and sufficient balance to fund the FD investment.

Opening a fixed deposit account can seem daunting, but it's actually quite straightforward. To open an ICICI Bank Fixed Deposit Account, you'll need a minimum deposit of ₹10,000.

You can start investing in a Fixed Deposit with a relatively small amount, specifically ₹5000, with Axis Bank. This makes it accessible to a wider range of people.

To open an online Fixed Deposit, you only need a DBS Bank Savings Account and sufficient balance to fund the FD investment. This makes the process easy and hassle-free.

DBS Bank also offers a paperless account opening process, requiring no signature. You'll just need to keep your Aadhaar card and Permanent Account Number (PAN) handy.

The minimum amount required to open an FD account varies between banks. Here's a quick rundown of the minimum deposits required:

This information will help you get started with opening a fixed deposit account.

You can get an overdraft facility against your Fixed Deposit, which allows you to borrow funds without breaking it.

The eligibility criteria for an overdraft facility against your FD may vary depending on the type of FD you have.

Typically, you can borrow funds against the value of your FD, giving you access to extra cash when you need it.

However, the interest rates for an overdraft facility against your FD may also vary, so be sure to check the details.

The minimum investment period for a Fixed Deposit (FD) varies, but it's typically between 7 days to 10 years. You can choose a tenure that suits your financial goals and risk appetite.

For instance, Axis Bank offers FD tenures ranging from 7 days to 10 years, as mentioned in Example 5. This flexibility allows you to plan your investments accordingly.

If you're looking to save taxes, you might consider tax-saving FDs, which often have a mandatory lock-in period of 5 years, as stated in Example 4.

Here's a summary of the minimum investment periods for different types of FDs:

Keep in mind that specific terms may vary depending on the financial institution and the type of FD.

You can partially withdraw from a Fixed Deposit, but be aware that this typically comes with a penalty or reduced FD Rates. The exact charges vary depending on the bank, the amount withdrawn, and the time remaining until maturity.

The minimum investment period for an FD is surprisingly flexible, ranging from 7 days to 10 years. However, specific terms may vary depending on the financial institution and the type of FD.

It's worth noting that tax-saving FDs often have a mandatory lock-in period of 5 years, which might impact your investment plans.

If you're looking for a regular income option, you can earn interest at monthly or quarterly intervals with our Fixed Deposits. This allows you to generate income at your preferred frequency.

The interest is compounded quarterly, which means your interest earns interest over time. This can help your money grow faster.

You can choose from a flexible tenure that ranges from 7 days to 10 years, so you can select a term that suits your needs.

Here are some key details about our Fixed Deposits:

By investing in a Fixed Deposit, you can enjoy assured returns and liquidity when you need it.

You can partially withdraw from Fixed Deposits, but this typically comes with a penalty or reduced FD Rates.

The exact charges vary depending on the bank, the amount withdrawn, and the time remaining until maturity.

It's essential to check with the bank's specific policies regarding premature withdrawals and partial withdrawals to avoid any surprises.

The penalty or reduced rates can be a significant drawback, so it's crucial to consider this factor before investing in a Fixed Deposit.

Fixed deposits offer a safe and stable way to save money, but the interest rates can vary depending on the bank and the tenure of the deposit. For example, ICICI Bank offers up to 7.80% per annum for senior citizens and 7.25% per annum for general citizens for a tenure ranging from 15 months to 2 years.

Interest rates on fixed deposits can be affected by the Central Bank's monetary policy. During periods of high inflation, the Central Bank may hike the interest rates at which it lends to banks, causing banks to hike their deposit rates as well.

DBS Bank offers competitive interest rates of up to 7.50% and 8.00% for senior citizens. The interest rates are subject to change, and the prevailing rate shall be applicable.

To calculate the interest rate on your fixed deposit, you can use the ICICI Bank FD Calculator. This will give you an idea of the returns you can expect from your deposit.

Here's a breakdown of the interest rates offered by DBS Bank:

Keep in mind that interest rates are subject to change, and the prevailing rate shall be applicable.

You can open a fixed deposit account online through various channels, including iMobile Pay App, Internet Banking, and more. ICICI Bank allows you to do so.

To create an FD account through Internet Banking, follow these steps:

The minimum deposit required to open an FD account varies by bank, but Axis Bank requires a minimum deposit of ₹5,000.

You can manage your FD account from anywhere, using your Internet and Mobile Banking facilities.

With ICICI Bank, you can open a Fixed Deposit Account online through various channels, including the iMobile Pay App, Internet Banking, Branch Visit, ATM, or by contacting Customer Care.

You can add or change nominees, provide maturity instructions, and easily manage your FD account remotely.

To renew your Fixed Deposit, you can choose from Auto-Renewal or Manual Renewal options.

With Auto-Renewal, your FD will automatically renew for the same period at the interest rate applicable on the day of maturity, if you select this mode at the time of opening the FD.

If you didn't select Auto-Renewal, you can still renew your FD manually using Internet Banking or the iMobile app.

To create an online account for a Fixed Deposit, you'll need to have a savings account with the bank, as seen with DBS Bank, where you only need a savings account and sufficient balance to fund the FD investment. Keep your Aadhaar card and Permanent Account Number (PAN) handy during the process.

You can start an instant FD with a video KYC in just 7 minutes, as offered by Axis Bank, making it a convenient option. The process is relatively quick and easy.

The minimum deposit required to open an FD account varies, but with Axis Bank, you can start investing with a minimum deposit of ₹5000. This makes it accessible to those who want to start investing with a relatively small amount.

To open an FD account online, you can use Internet Banking, as seen with ICICI Bank, where you can log in, select 'Deposits', and then 'Create FD' to start the process. You can also use the iMobile Pay App or ATM for added convenience.

Here's a step-by-step guide to creating an FD account through Internet Banking:

With ICICI Bank, you can also manage your FD account from anywhere using Internet and Mobile Banking facilities, making it easy to add or change nominees, provide maturity instructions, and more.