FDs are one of the oldest and most common methods of investing. When it comes to assured returns, choosing the right type of savings scheme makes all the difference. Fixed Deposits let you make the most of value-added benefits as you create wealth at low risk. Based on a consumer’s investment portfolio, the FD investment period can either be short-term or long-term. The rate of interests on fixed deposits vary from one company or bank to another.

There are several types of fixed deposit offered to investors that one should be well informed about.

  1. Corporate Fixed Deposits
  2. Standard Fixed Deposits
  3. Senior Citizen Fixed Deposits
  4. Cumulative Fixed Deposits
  5. Non-cumulative Fixed Deposits
  6. Flexi Fixed Deposits

Advantages of FD

  1. Assured returns – Unlike most other investment schemes, FDs offer guaranteed returns on the deposited sum.
  2. Offers flexibility – There is enough flexibility when it comes to the tenure of the plan. Depending on financial goals, one can opt for either open short-term FD accounts or long-term FD accounts.
  3. High capital appreciation – Cumulative fixed deposit plans compound interest monthly or quarterly or half-yearly. Hence, the deposit amount is substantially appreciated by the end of tenure.
  4. An additional source of income – An investor can select the frequency of interest payout for non-cumulative fixed deposit plans. Therefore, they can act as an added source of income.






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