What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is a financial product offered by banks and Non-Banking Financial Companies (NBFCs) where you deposit a lump sum of money for a predetermined period at a specified, fixed rate of interest.
FDs are widely regarded as one of the safest investment options in India due primarily to their guaranteed returns. At maturity, you receive your original principal along with accumulated interest.
Why Investors Prefer FDs?
- ✔ Guaranteed Returns: Insulated from market fluctuations.
- ✔ Flexible Tenors: Ranging from 7 days to 10 years.
- ✔ Capital Protection: Ideal for conservative investors.
- ✔ Loan Facility: Loans typically up to 90% of deposit value.
Types of Fixed Deposit Services
Regular FD
Standard investment for excess funds with assured returns.
Tax-Saving FD
5-year lock-in period. Eligible for deductions under Section 80C.
Cumulative FD
Interest is compounded and paid along with principal at maturity.
Non-Cumulative FD
Interest paid at regular intervals (Monthly/Quarterly).
How to Open an FD Account?
Select Platform
Choose a reliable vendor like VSRK Capital for safe, high-interest FDs.
Choose Tenure
Decide on duration and amount. Higher tenors often yield better rates.
KYC Documents
Provide PAN, Aadhaar, and address proof for verified opening.
Select Type
Pick Cumulative (compounded) or Non-Cumulative (payouts).
Make Payment
Pay via Net Banking, UPI, or Cheque to activate your FD.
Earn Returns
Sit back and enjoy guaranteed, safe, and assured returns.
Comparison: FD vs Other Instruments
| Parameter | Fixed Deposit | Mutual Funds | Savings Account |
|---|---|---|---|
| Returns | Fixed & Guaranteed | Market Linked (Variable) | Low (Variable) |
| Risk | Low | Moderate to High | Low |
| Liquidity | Medium (with penalty) | High | High |
| Tax Benefit | Sec 80C (Tax-saving FDs) | ELSS under 80C | No direct benefit |
| Ideal For | Conservative investors | Growth seekers | Daily transactions |
Common FAQs
Can I open a Fixed Deposit online?
Yes, you can open an FD through our streamlined online onboarding process with minimal documentation.
Is pre-maturity withdrawal permitted?
Most banks/NBFCs allow premature withdrawal, though it may involve a small penalty or reduced interest rate (except for Tax-saving FDs).
Can I have a loan against my FD?
Yes, you can conveniently opt for a loan against your FD, typically up to 90% of the value, without breaking the deposit.
Is interest received on FD taxable?
Interest income is considered part of your total income and taxed as per your slab. TDS is applicable if interest exceeds ₹40,000 (₹50,000 for seniors).
Why VSRK Capital for Your FD Needs?
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