Fixed Deposits
Safe, predictable returns on your savings.
Overview
Fixed deposits remain one of the safest ways to grow idle savings. We help you compare FD rates across banks and NBFCs and structure deposits (including laddering) to balance returns with liquidity.
What We Help With
- Bank and corporate/NBFC fixed deposits
- Comparison of interest rates across issuers
- FD laddering for better liquidity management
- Senior citizen FD schemes with higher rates
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Get in TouchFixed Deposits FAQs
Is FD interest taxable?
Yes — interest earned is fully taxable at your income tax slab rate, and banks deduct TDS if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). It's added to your total income, so the effective return is lower than the quoted rate once tax is accounted for.
What happens if I break my FD before maturity?
Most banks allow premature withdrawal but charge a penalty, typically 0.5–1% lower interest than what you'd otherwise have earned. Some tax-saving FDs (5-year lock-in) don't allow premature withdrawal at all. Checking the specific FD's premature withdrawal terms before investing avoids a surprise later.
Are NBFC fixed deposits safe compared to bank FDs?
Bank FDs are insured up to ₹5 lakh per depositor by DICGC, which NBFC FDs are not. NBFC FDs typically offer higher rates to compensate for that extra risk. Checking the NBFC's credit rating (AAA-rated NBFCs are considered relatively safe) before investing is worth the few minutes it takes.
What is FD laddering and why does it help?
Laddering means splitting one large deposit into several smaller FDs with staggered maturity dates, instead of locking it all into one tenure. This gives you periodic access to funds without breaking a deposit early, while still capturing longer-tenure rates on part of your money.
Is a fixed deposit better than a savings account?
For money you won't need for a while, yes — FDs pay meaningfully more interest than a savings account. But FDs lock in your funds (with a penalty for early exit), so keeping some money in a savings account or liquid fund for genuine emergencies alongside your FDs is the more balanced approach.