Fixed Deposit, also commonly known as FD, is a method of investment, which allows the investor to invest a fixed sum of money for a specified period of time. It is one of the most low risk investment options and therefore, the only returns on it is the interest it earn for the duration it is deposited.
They offer better rate of interest than savings bank account, and those investors who do not want to take a huge risk opt for this method of investment.
Some fixed deposits also allow tax benefits, by lowering taxes, therefore, it is one of the best methods to generate predictable returns.
Types of Fixed Deposits
Conventional FD: This is the most common and popular type of Fixed Deposit and the interest is paid out at regular fixed intervals. Investors can choose to avail a loan against their fixed deposit.
Tax-saving FD: Just like the name suggests, these fixed deposits are designed to act as tax saving services, since the reduce the taxable income.
Senior citizen FD: This FD option is designed specifically for senior citizens, keeping in mind, their needs and requirements.
To know more about fixed deposits and how to benefit through these investment options, contact Arthavidhi today.
