Fixed Deposits, commonly known as FDs, are one of the most popular forms of investment in India. They offer a low-risk investment option with guaranteed returns, making them an attractive investment for people of all ages. In this article, we will explore what Fixed Deposits are and the basics of investing in them.
What is a Fixed Deposit?
A Fixed Deposit is a type of investment provided by banks and other financial institutions. It is a savings account where you can deposit a lump sum of money for a pre-determined period, which can range from a few months to several years. The interest rate on the deposit is fixed at the time of investment, and you earn interest on your deposited amount at that rate.
How to Invest in Fixed Deposits?
Investing in Fixed Deposits is a straightforward process. You can invest in Fixed Deposits through your bank or other financial institutions that offer this facility. To invest in Fixed Deposits, you need to follow these simple steps:
Step 1: Choose a bank or financial institution that suits your investment needs.
The first step is to choose the bank or financial institution where you want to invest your money. Different banks offer different interest rates and have different terms and conditions for investing in Fixed Deposits.
Step 2: Decide on the tenure of your FD.
The tenure of your FD refers to the period for which you want to invest your money. The tenure can range from a few months to several years, depending on your investment needs. You should choose the tenure carefully, as it will determine how much interest you earn on your deposit.
Step 3: Decide on the amount you want to invest.
The amount you want to invest in your Fixed Deposit will depend on your financial goals and how much you can afford to invest. You should choose an amount that you are comfortable investing and can afford to leave invested for the duration of the deposit.
Step 4: Submit the required documents.
To open a Fixed Deposit account, you will need to submit various documents like your ID proof, address proof, and PAN card. The bank or financial institution where you want to open the account will provide you with a list of documents required.
Step 5: Choose the interest payout option.
You can choose to receive the interest earned on your deposit periodically or opt for the interest to be reinvested. The interest payout option will determine how frequently you receive the interest.
Apps for Investing in Fixed Deposits
Apps for Investing in Fixed Deposits have become increasingly popular due to their convenience and accessibility. Several banks and financial institutions in India have created mobile applications that allow investors to open FD accounts, calculate interest rates and keep track of their investments. Let’s explore some of the apps available in the market for investing in Fixed Deposits.
1. Bajaj Finserv
Bajaj Finserv is a comprehensive app that allows you to invest in Fixed Deposits from your mobile phone. The app offers a range of options with different tenures and interest rates. It also provides information on the applicable FD tax and TDS rates. With the Bajaj Finserv app, you can compare FD interest rates for senior citizens and calculate your returns using the app’s FD calculator. The app also allows you to invest in other investment options like mutual funds, stocks, and bonds.
2. HDFC Bank
HDFC Bank’s mobile banking app allows you to invest in Fixed Deposits securely from your mobile phone. All you need is to have your mobile number and HDFC Bank debit card details. The app offers different types of Fixed Deposits with different tenures and interest rates. It also provides a Fixed Deposit calculator to help you calculate your returns. Additionally, you can manage your Fixed Deposit account, check your balance and details of your deposits using the app.
3. ICICI Bank
ICICI Bank’s iMobile app is a secure and user-friendly app that allows you to open and manage Fixed Deposit accounts from your mobile phone. The app offers a range of FD tenures and interest rates, and you can choose the one that suits your investment goals. The app also provides a Fixed Deposit interest rate calculator, which helps users calculate their returns. Moreover, the app also allows you to change the maturity instructions, view TDS certificates, and modify FD details.
4. State Bank of India
State Bank of India (SBI) offers the SBI YONO app, which allows customers to invest in FDs through their mobile phones. The app provides options for different tenures and interest rates. It also provides information on the TDS rate on FD interest and other FD tax rules. You can use the app’s FD calculator to calculate your returns and manage your FD account, along with other features such as account balance checks, funds transfer, and bill payments.
5. Axis Bank
Axis Bank’s Axis Mobile app offers easy and secure access to Fixed Deposits from your mobile phone. The app provides different options for tenures and interest rates, allowing you to choose the one that meets your investment needs. The app also provides an FD maturity calculator that helps you determine the maturity amount and interest earned on your Fixed Deposits. You can also modify and renew your FDs through the app.
Fixed Deposits are a popular investment option for those looking for a low-risk, guaranteed return investment option. Understanding the basics of investing in Fixed Deposits is crucial for making informed investment decisions. By following the simple steps mentioned above, one can invest in FDs without any hassle. Additionally, apps like the Bajaj Finserv app, HDFC mobile app and SBI app etc. make investing in FDs even more accessible. Before investing in FDs, however, it is important to assess your investment needs and consider the pros and cons of investing in Fixed Deposits.