How to Select the Best Fixed Deposit Plan?

Best Fixed Deposit Plan

Fixed deposit (FD) is a fixed rate deposit which you hold for a definite period of time. These deposits are typically invested in bonds and securities like stocks. Starting an FD is a great option for those looking to save but who do not want to watch the markets too closely. Select the fixed deposit plan best suited to your personal situation and then make payments monthly until maturity, when you may choose for it to be rolled over into another FD or become fully withdrawn.

A Fixed Deposit is a fixed deposit that you can book with a bank or Non-Banking Financial Company (NBFC) of your choice. Through this investment, you can save your hard-earned money and get assured returns. To start a fixed deposit, you need to have a lump sum of money that you can put away for some time. You will earn interest on this lump sum upon maturity with an FD. It is easy to start a fixed deposit, and you can book one at any bank or NBFC of your choice.

What is a Fixed Deposit?

Fixed deposits are the safest form of savings options that help you save money, earn more and keep track of your money. Get assured returns on your investment with an interest rate that depends on the tenure of the deposit and the amount you are investing in.

What is the Eligibility to Open a Fixed Deposit?

Listed below are the documents required and the eligibility criteria to apply for an FD.

  •  To check the minimum investment amount for the bank or NBFC of your choice, visit their website. The minimum amount will be listed there.
  •  You need to be an Indian citizen residing in India for opening any FDs. However, NonResidential External FDs are also available for individuals outside India.
  • You must have identity proof like a passport, Aadhaar card, PAN (Personal Account Number) Card, Voter ID, or any other government-approved identification.
  • Address proof is also required. 

Factors to Consider while Selecting an FD

  1. The economy has been experiencing ups and downs. For example, if you have an FD account with a financial institution offering at least 5% interest on a basic FD account, it is wise to continue doing so. As well as this, going below this amount is not very good for the future when you need to invest in a new FD or re-invest a previous deposit that matured. With the RBL Bank Fixed Deposit Scheme, you can earn interest on your fund up to 8.40% per annum, including the additional interest rate of 0.50% per annum for senior citizen FD scheme.
  2. RBL Bank Fixed Deposit is among the safest FDs on offer with a safety rating of “[ICRA]AA+ (Stable)” by ICRA and Rated “IND AA+/Stable” by India Ratings and Research (A high degree of safety), which indicates high credit quality.
  3. RBL Bank offers both cumulative and non-cumulative FDs for your convenience. If you want to earn monthly, quarterly, half-yearly or yearly interest, you can choose between a cumulative and non-cumulative FD. With a non-cumulative fixed deposit, you can earn monthly, quarterly or half-yearly interest. You’ll only get your interest with the principal amount upon maturity with a cumulative FD and will be credited fully by maturity.
  4. The process of application varies for every bank or financial institution. The online process is the fastest way to open a fixed deposit account with a bank. However, not every institution provides online facilities and demands that you visit their branch in order to start an FD. However, if you do not have access to net banking, you can always go to the bank and submit the required documents to open a new FD account.
By Hania

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