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What are the types of Fixed Deposits?

RBL Bank Feb 09, 2024

Once you get into the habit of saving money, it becomes a blessing if you invest it wisely. But confused by too many options available on the market and unsure which financial instrument is best suited to your needs? Invest in Fixed Deposits (FDs) today and enjoy the benefits offered through the varioustypes of fixed deposits.

Why are Fixed Deposits Reliable?

Fixed Deposits are considered the most practical investment option available to many. It assures guaranteed returns and gives you the flexibility to choose how much to invest and for how long. This means that you are the key decision-maker and can control the return rate you require.

You are also safe from the fluctuations of the market and will enjoy the rate at which you deposited, despite market ups and downs.

With various types of FDs, you can invest in different tenures and enjoy multiple benefits, and the longer the tenure, the higher the rate of interest. So, take a step towards achieving your goals and choose the type of FD you want to invest in.

RBL Bank offers you one of the best FDs at the best interest rate in the market to choose from and secure your financial future.

Why choose RBL Bank for Fixed Deposit?

Have you ever wondered why Fixed Deposits (FDs) are India’s most favourite investment? What is so special about FDs?

Yes! In India, INR 99 trillion is invested in Fixed Deposits. This is the highest value of all the available investment options in the market. Safety and assured returns are two driving factors for FD investment. Fixed Deposits are financial instruments offered by banks and non-banking financial organizations.

High and stable interest rates

Consider a marathon race where runners must maintain a steady pace to reach the finish line. Similarly, FD offers a fixed interest rate for a specific duration of the deposit, providing a consistent return on investment. Unlike other investment options, fluctuations in the broader market do not affect the interest rates of Fixed Deposits. RBL Bank offers attractive interest rates on FD, making them a competitive investment option.

Safe and flexible investment

Is FD a flexible investment option? Yes, Fixed Deposit is a flexible investment option. You can choose to invest in an FD for a duration ranging from 7 days to 20 years. Additionally, you can receive interest payouts monthly, quarterly, or half-yearly depending on your requirement. You can also choose cumulative interest, where interest is compounded with your investment. Fixed Deposit guarantees both your investment and interest and with an FD calculator, you can calculate your returns in advance.

Overdraft (OD)/Credit Card against FD

Let’s assume you have invested INR 5 lakhs in RBL Bank's Digital Fixed Deposit for a 5-year tenure. After one year, you urgently need funds. Imagine how convenient it would be for you to get funds without breaking your FD and at a low interest rate. Now, you can take collateral credit against your RBL Bank Fixed Deposit.

RBL Bank allows you to avail Overdraft or Credit Card against your deposits, enabling you to avoid the penalty of premature withdrawal. You can get up to 90% of your Fixed Deposit as an overdraft or Credit Card limit from RBL Bank.

Tax saver FD

Well, we all know that every source of our income is taxable. But with Tax saver FD you can save tax up to INR 1.5 lakhs p.a. under Section 80C of the Income Tax Act, 1961. The only condition is that you cannot withdraw your FD prematurely.

Head on to the application form to invest in an FD now.

The Different Types of Fixed Deposits

Depending on your needs and how long you wish to invest, there are various types of fixed deposits you can invest in. Discuss with your bank to know which type of FD works for you and how to secure your financial future.

Here are the different types of FDs available:

Regular Fixed Deposits

If you are planning to invest in an FD for the first time or looking for a steady source of income, then this is the ideal option for you. FDs are generally low-risk investments, and a Regular FD comes with the lowest risk factor. Once the FD matures, you can avail guaranteed returns. You can invest for seven days to 20 years and benefit from the interest earned during the period. Please note that the interest rate will go up as the tenure of the investment increases. Click here to know the interest rates offered.

Tax Saving Fixed Deposits

If you want to enjoy both the benefits of guaranteed returns as well as tax exemptions, then this tax-saving type FD is for you. Certain FDs offer you the possibility of tax relaxation. If you are a risk-averse person, then your quest is over. These tax-saving FDs give you the opportunity to obtain tax deductions under the Income Tax Act of 1961, Section 80C. You can save tax on amount up to INR 1,50,000 It is important to know that only first holders of common accounts are entitled to tax benefits.

These FDs come with an obligatory five-year lock-in period, guaranteed returns, and the benefit of being low-risk.

Senior Citizens Fixed Deposits

This type of FD is for senior citizens aiming to secure their post-retirement life and enjoy a guaranteed source of income.

Does it worry you that once you hit retirement age, your savings will no longer be able to sustain you?

Does the feeling of being burdened with no capital once you stop working bother you? Then invest in a senior citizen FD today.

You get to enjoy both assured and highest returns, along with availing an additional interest rate of 0.5%. So, secure your future and get ready to enjoy a relaxed post-retirement life, reaping the benefits of your hard work.

If you are 80 years and above, you are entitled to a preferential interest rate of 0.75% per year for all tenures. In addition to the higher interest rate, Super Senior Citizen Fixed Deposits account has several other advantages. You can benefit from a constant and reliable income stream in the post-retirement years with a regular interest payment option. It makes a secure environment where money can grow steadily.

Flexi Sure Fixed Deposits

Looking forward to reaping the benefits of assured returns and enjoying the power of liquidity? Your search for an ideal type of FD ends here.

In this type of fixed deposit, you can link your FD account with your Savings Account/ Current Account. You can do all of this while assuring a guaranteed fixed income. With this type of Flexi sure FDs, you can enjoy double the benefits and earn more than you can ask for.

Digital Fixed Deposit

A Digital Fixed Deposit is a financial instrument that can be opened and managed entirely online through RBL Bank’s website or RBL MoBank App. It allows you to deposit a lump sum amount for a fixed period at fixed interest rate, giving you a guaranteed return on your deposits.

Opening a Digital Fixed Deposit with RBL Bank is an effortless and eco-friendly process, as it does not involve any paperwork.

All you need is your Permanent Account Number (PAN) and Aadhaar card details to open your Digital FD with RBL Bank website. Follow these 3 simple steps to get started with your Digital FD account on RBL Banks website.

  • Provide PAN and Aadhaar card details

  • Complete Video KYC

  • Fund your FD

Provide PAN and Aadhaar Card Details - It is mandatory to complete Know Your Customer (KYC) to open an FD. In the KYC process your mobile number, Aadhaar and PAN card details will be verified. Further, you need to provide your personal and nominee details.

Complete Video KYC - The next step is to complete full KYC or Video KYC. Video KYC is an audio-visual interaction. In which a representative from RBL Bank will verify and capture your PAN card and signature.

Fund your FD - The last step is to fund your FD. You can transfer funds from any of your existing bank accounts through UPI, Debit Card, and Net banking. Once you fund your FD, just relax, and track your earnings whenever you want, through our MoBank App.

 

ACE Fixed Deposit

If you are looking for specialized FDs with maximum benefits, look no further! ACE FD is a domestic term deposit wherein depositors get a differential rate of interest over normal Fixed Deposit rate for deposits of INR 1 crore and above, foregoing the premature withdrawal option. It offers a tenure of 12 months to a maximum of 10 years.

Smart Deposit

Some FDs come with convenience and flexibility to match your financial planning. You can now avail the benefit of flexibility along with regular savings by opening a Smart Deposit with a minimum amount as low as INR 1,000 along with a monthly SI for similar amount & get an option to top-up an additional amount to increase savings with the same interest rate that your deposit was booked at.

The interest rate for the entire tenure shall remain the same, including for the top-up amount.

Considering all these benefits, various types of FDs tailored to meet your requirements, and the current market scenario, investing in FD is an intelligent decision, and it will be a stable and safest investment in your portfolio.

Disclaimer: Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result. Visitors to this blog/ website w.r.t products & services offered by RBL Bank Limited herein, shall ensure that the comments / feedback posted shall be restricted to the contents published herein and shall not contain such language that may be un-parliamentary or against any religion, caste, section of society, political view etc. While our endeavor is to publish the comments that are submitted, however, all comments/feedback shall be subject to internal review by RBL Bank Limited. We do not guarantee that the comments that are submitted will be published.

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