Types of Fixed Deposits

1. Regular Fixed Deposits

Standard FDs with fixed tenure and interest rates. Example: ₹5L FD @7% for 5 years earns ₹1,75,000.

2. Tax-Saving FDs (5-Year)

Eligible for ₹1.5 lakh deduction under Section 80C. Interest is taxable but offers guaranteed returns.

3. Senior Citizen FDs

0.5% extra interest for citizens above 60. SBI offers 6.7% vs. 6.2% for regular customers.

4. Cumulative FDs

Interest reinvested and paid at maturity. A ₹10L FD @7% for 5 years gives ₹13,50,000 total (principal + interest).

5. Non-Cumulative FDs

Periodic interest payouts. Ideal for monthly income: ₹10L FD @7% gives ₹5,833/month.

6. Flexi Fixed Deposits

Link your savings account to FD. Excess funds beyond a threshold (e.g., ₹1 lakh) auto-convert to FDs.

7. Sweep-In/Sweep-Out FDs

Automate transfers between FD and savings accounts. Kotak’s Flexi FD offers this feature.

8. Corporate FDs

Offered by NBFCs like Bajaj Finance. Higher rates (8.5%) but slightly higher risk than bank FDs.

9. Post Office FDs

Government-backed FDs with tax benefits. 7.5% for 5 years, but limited to ₹15 lakh per account.

10. NRE/NRO FDs

For NRIs. NRO FDs are taxable in India, while NRE FDs offer tax-free interest.