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Fixed Deposits schemes are one of the most common and trusted investments most people in India opt for. These financial instruments have a higher rate of interest than your regular savings account, until the predetermined date of maturity. These high rates of interest come with conditions imposed on the amount invested, on the fact that this money, more often than not, cannot be withdrawn until the term is completed.

A great way to invest a surplus, and encourage your savings, a Fixed Deposit scheme for long term not only gives you the benefit of a higher rate of interest, but also gives you an advantage when opting for a loan with the investor. From a wider perspective, Fixed Deposits help boost the country’s economy.

5 Types Of Fixed Deposit Schemes For A Secure Future

Fixed Deposit scheme in India

Here’s a quick look into the types of Fixed Deposits for you to choose from to secure your future.

  • Typical Fixed Deposits

This type is the regular investment where you make a Fixed Deposit at a bank or NBFC or even a post office for a higher rate of interest and a fixed date of maturity. Once your tenure ends, your principal, along with the pre-approved interest is returned. You cannot withdraw this amount, unless you’re hit by a financial emergency, when you can withdraw the amount at a penalty of the interest rate.

If you’re looking to invest in a Fixed Deposit, you can calculate the interest through the formula given below:

A= P(1+r/n)^(nt)

where, A=amount at the end of the year

P=principal invested

R=rate of interest

N= quarterly compounding

T= time period of the investment

Or you could simply use an online FD calculator and sort out your finances.

  • Flexi Fixed Deposits

This type of deposit is called the sweep-in–sweep-out deposit. Your Fixed Deposit scheme for long term is linked to your savings account and money moves between the two accounts. So the money is swept out of your savings account and swept into your Fixed Deposit.

The flexi deposit is a combination of the Fixed Deposit and the demand deposit. With a flexi Fixed Deposit, you are entitled to the liquidity of both the accounts as well as the high returns from your FD.

  • 5-year Tax Saver Fixed Deposit

As the name suggests, this type of Fixed Deposit helps you save Rs. 1.5 lakh a year, under Section 80C. The amount deposited is non-callable for the tenure period of five years. The interest paid during this period is given to you after the required tax reductions. You cannot take a loan against this invested lump sum or avail an overdraft facility.

Depending on the financier you choose, you can avail the following Fixed Deposits.

  • Corporate Fixed Deposit

You can avail a high rate of interest between 8–16% with corporate Fixed Deposits. Most NBFCs, including Bajaj Finserv, offer this type of Fixed Deposit. This is a safe investment for those of you who find investing in stock market a risky affair.

The NHB and HUDCO are two of the Fixed Deposit scheme in India offered by the government.

  • Bank Fixed Deposit

Banks and NBFCs that are regulated by the RBI offer bank FDs. An amount of up to Rs. 1 lakh is usually guaranteed by the RBI. Though the interest rates offered through bank FDs are lesser, the probability of risk involved is minimal.

Depending on your financial situation and the requirements you have (considering the future too), you can choose the type of loan that is most profitable for you, and ensure financial stability for the future.

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