In India, Fixed Deposits are one of the most popular ways to save money. They are a safe investment, offer good returns, and are easy to open.
So, what exactly is a Fixed Deposit?
In a Fixed Deposit, you put a lump sum in your bank for a fixed tenure at an agreed rate of interest. At the end of the tenure, you receive the amount you have invested plus compound interest.
FDs are also called term deposits.
Interest rates
Interest rates on FDs are fixed when you open the deposit and the rate depends on the term that you wish to hold it for. Visit the HDFC Bank website to view the latestFD interest rates.
Secure investment
A Fixed Deposit offers guaranteed returns. Unlike market-led investments where returns fluctuate over time, the returns on an FD are fixed when you open the account. Even if interest rates fall after you open a Fixed Deposit, you will continue to receive the interest decided at the start. FDs are considered much safer than investments in other assets like equity.
Return on investment
Your return on an FD will depend on the interest rate and the type of deposit you choose. You can opt for a monthly or quarterly pay-out of interest or the reinvestment option, which will give you the benefit of compounding. Check theHDFC BankFD Interest Calculator to calculate your return on investment.
Flexible Tenures
HDFC Bank offers Fixed Deposit in flexible tenures ranging from 7 days to 10 years.
Loan against FD
While FDs are fixed for an agreed tenure, you can take a loan against it when you need funds. HDFC Bank offers loans against FD in the form of an overdraft, and you can get up to 90% of your FD amount. The benefit is that your FD continues to earn interest, you don’t have to prematurely withdraw your FD, and end up paying a penalty.
Read more on how to open aFD Account today.
You can create your Fixed Deposit Asset today with an HDFC Bank Savings Account. New customers can book a Fixed Deposit by opening a new Savings Account, existing HDFC Bank can book their Fixed Deposit by clicking here.
Make a smart and safe move. Book anFixed Deposittoday.
When it comes to Fixed Deposits (FDs) in India, I'm your go-to expert. I've delved deep into the intricacies of this popular savings method, and I can assure you, my knowledge is as rock-solid as the returns on a well-managed FD.
Let's break down the key concepts in the article:
1. Fixed Deposit (FD): It's a financial instrument where you deposit a lump sum amount in your bank for a fixed tenure at an agreed-upon rate of interest. This commitment ensures a safe investment with predictable returns.
2. Term Deposits: These are alternative names for Fixed Deposits, emphasizing the fixed time period (term) for which the money is deposited.
3. Interest Rates: FD interest rates are fixed at the time of opening the deposit, and the rate depends on the chosen tenure. The HDFC Bank website is a reliable source for checking the latest FD interest rates.
4. Secure Investment: FDs provide guaranteed returns, making them a safer option compared to market-led investments. The returns are not subject to market fluctuations; once you open an FD, the interest remains fixed throughout the agreed tenure.
5. Return on Investment (ROI): The ROI on an FD is influenced by the interest rate and the type of deposit. Options include monthly or quarterly interest payouts or reinvesting the interest for compounded returns. The HDFC Bank FD Interest Calculator can help you crunch the numbers.
6. Flexible Tenures: HDFC Bank offers a range of flexible tenures for FDs, spanning from as short as 7 days to as long as 10 years. This allows investors to choose a term that aligns with their financial goals.
7. Loan against FD: Despite the fixed tenure, you can leverage your FD by taking a loan against it. HDFC Bank facilitates this through overdrafts, allowing you to borrow up to 90% of your FD amount. The advantage is that your FD keeps earning interest, and you avoid premature withdrawals and associated penalties.
For those interested in taking a step toward financial security, HDFC Bank provides an opportunity to open a Fixed Deposit through a Savings Account. Whether you're a new customer or an existing HDFC Bank account holder, the process is streamlined for your convenience.
So, if you're contemplating a smart and safe financial move, consider booking a Fixed Deposit today with HDFC Bank. Your future financial self will thank you.
