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• Ignore the unrated Company DEPOSIT Schemes. Ignore deposit schemes of little known manufacturing companies. For NBFC's, RBI has MADE it mandatory to have an 'A' rating to be eligible to ACCEPT public deposits, one should go further and LOOK at only AA or AAA schemes.
• Within a given rating grade, CHOOSE the company with a better reputation.
• Once you decide on a company, next choose the schemes that has given a better return. Unless you need income regularly.

Companies registered under Companies Act 1956, such as:-

• Manufacturing Companies.
• Non-Banking Finance Companies.
• Housing Finance Companies.
• Financial INSTITUTIONS.
• GOVERNMENT Companies.

Companies registered under Companies Act 1956, such as:-

Tax is DEDUCTED at SOURCE, from the interest on Fixed Deposits, as applicable, as per the Income Tax ACT, 1961.

Tax is deducted at source, from the interest on Fixed Deposits, as applicable, as per the Income Tax Act, 1961.

Bank Fixed Deposits (FDS) are GENERALLY safe investments because FDs up to Rs 1 lakh are insured under the Deposit Insurance & Credit GUARANTEE Scheme of INDIA.

Bank Fixed Deposits (FDs) are generally safe investments because FDs up to Rs 1 lakh are insured under the Deposit Insurance & Credit Guarantee Scheme of India.

The INTEREST rate that is offered on a fixed deposit by the borrowing institution helps PROVIDE an insight into the position of the entity. If the financial condition is very STRONG then the institution can raise funds by OFFERING a low rate while a HIGH rate has to be offered to the investors to get them to consider the investment given the slightly higher risk involved. 

The interest rate that is offered on a fixed deposit by the borrowing institution helps provide an insight into the position of the entity. If the financial condition is very strong then the institution can raise funds by offering a low rate while a high rate has to be offered to the investors to get them to consider the investment given the slightly higher risk involved. 

Renewal of deposit is a process whereby the deposit HOLDER continues with the deposit for an additional time PERIOD after the completion of the initial time period of INVESTMENT. The additional period can be similar or different from the ORIGINAL time period. Instead of withdrawing the deposit amount this is continued.

Renewal of deposit is a process whereby the deposit holder continues with the deposit for an additional time period after the completion of the initial time period of investment. The additional period can be similar or different from the original time period. Instead of withdrawing the deposit amount this is continued.

There are MANY other institutions apart from banks that offer fixed deposit investment options for investors. WITHIN the banking family there are public sector banks, private sector banks as WELL as co-operative banks with whom a fixed deposit can be made.

There are many other institutions apart from banks that offer fixed deposit investment options for investors. Within the banking family there are public sector banks, private sector banks as well as co-operative banks with whom a fixed deposit can be made.

Fixed deposit is a sum of money GIVEN to a bank, financial institution or company whereby the receiving ENTITY pays INTEREST at a specified percentage for the time duration of the deposit. At the end of the time period of the deposit the amount that is ORIGINALLY given is returned to the investor. Fixed deposits are also KNOWN as term deposits. 

Fixed deposit is a sum of money given to a bank, financial institution or company whereby the receiving entity pays interest at a specified percentage for the time duration of the deposit. At the end of the time period of the deposit the amount that is originally given is returned to the investor. Fixed deposits are also known as term deposits. 

YES, you can opt for auto renewal at the TIME of OPENING the FD or anytime before the FD matures. Auto renewal allows your FD to get renewed AUTOMATICALLY for the same period as the original DEPOSIT. However under auto renewal option the fixed deposit receipt is with the custody of the Bank and Memorandum of Deposit (MOD) is issued in lieu of fixed deposit receipt.

Yes, you can opt for auto renewal at the time of opening the FD or anytime before the FD matures. Auto renewal allows your FD to get renewed automatically for the same period as the original deposit. However under auto renewal option the fixed deposit receipt is with the custody of the Bank and Memorandum of Deposit (MOD) is issued in lieu of fixed deposit receipt.

TDS is DEDUCTED if the interest on FIXED deposit exceeds Rs.5000/- in a financial YEAR.

TDS is deducted if the interest on fixed deposit exceeds Rs.5000/- in a financial year.

Bank FIXED DEPOSITS are deposits that are collected from INVESTORS by BANKS for a SPECIFIC time period are known as bank fixed deposits or bank term deposits. These form the main area of raising funds for banks. 

Bank fixed deposits are deposits that are collected from investors by banks for a specific time period are known as bank fixed deposits or bank term deposits. These form the main area of raising funds for banks. 

Explicit Deposit Insurance is a measure implemented in many countries to PROTECT bank depositors, in FULL or in PART, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are ONE COMPONENT of a financial system safety net that promotes financial stability.

Explicit Deposit Insurance is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of a financial system safety net that promotes financial stability.

For the TRADITIONAL scheme, the interest on the FD ACCOUNT is credited to the Savings account specified by you on a MONTHLY basis or on a quarterly basis. For the REINVESTMENT scheme, the interest is COMPOUNDED to the principal amount on a quarterly basis.

For the Traditional scheme, the interest on the FD account is credited to the Savings account specified by you on a monthly basis or on a quarterly basis. For the Reinvestment scheme, the interest is compounded to the principal amount on a quarterly basis.

Company FIXED Deposit have always offered interest which is 2-3% HIGHER than Bank Deposit RATE. Because they have to PAY higher interest to banks for borrowing money.

Company Fixed Deposit have always offered interest which is 2-3% higher than Bank Deposit rate. Because they have to pay higher interest to banks for borrowing money.

After maturity of your FD, you can walk into any Bank ACROSS the COUNTRY and claim your deposit by FURNISHING your Fixed Deposit receipt/Memorandum of Deposit.

After maturity of your FD, you can walk into any Bank across the country and claim your deposit by furnishing your Fixed Deposit receipt/Memorandum of Deposit.

The FACILITY of Nomination is available for relationships in the names of individuals. UNLESS otherwise specifically given in WRITING by depositors, nomination in DEPOSIT accounts will be at Customer ID LEVEL.

The facility of Nomination is available for relationships in the names of individuals. Unless otherwise specifically given in writing by depositors, nomination in deposit accounts will be at Customer ID level.

COMPANY Fixed Deposits can be accepted by a Manufacturing Company having duration from 6 months to 3 YEARS. Non-Banking Finance Company can ACCEPT deposit from 1 year to 5 years period. A Housing Finance Company can accept deposit from 1 year to 7 years. 

Company Fixed Deposits can be accepted by a Manufacturing Company having duration from 6 months to 3 years. Non-Banking Finance Company can accept deposit from 1 year to 5 years period. A Housing Finance Company can accept deposit from 1 year to 7 years. 

You can DEPOSIT money for as SHORT a period as 7 days and upto 10 YEARS.

You can deposit money for as short a period as 7 days and upto 10 years.

Demand DEPOSITS are the sum of money that is given to a bank but can be withdrawn as per the requirement of the depositor. AMOUNTS that are lying in the SAVINGS and current accounts are known as demand deposits because they can be used at any POINT of time.

Demand deposits are the sum of money that is given to a bank but can be withdrawn as per the requirement of the depositor. Amounts that are lying in the savings and current accounts are known as demand deposits because they can be used at any point of time.

As an investor the biggest reason why you should consider investing in non callable fixed deposits is the higher RATE of INTEREST. The rate of interest in non callable fixed deposits is higher compared to callable fixed deposits for the same tenure. But since Callable fixed deposits ALLOW you to liquidate or break your deposit within the tenure period at any point of time CHOOSE your investments CAREFULLY.

As an investor the biggest reason why you should consider investing in non callable fixed deposits is the higher rate of interest. The rate of interest in non callable fixed deposits is higher compared to callable fixed deposits for the same tenure. But since Callable fixed deposits allow you to liquidate or break your deposit within the tenure period at any point of time choose your investments carefully.

Interest is paid on monthly/quarterly/half yearly/yearly or on MATURITY BASIS and is SENT EITHER through cheque or ECS facility.

Interest is paid on monthly/quarterly/half yearly/yearly or on maturity basis and is sent either through cheque or ECS facility.

FCNR DEPOSITS STANDS for Foreign Currency Non-Repatriable account deposits. This is a Fixed Deposit Foreign Currency account and not a savings account. Deposits in this account can be made in any of the major currencies like US Dollar, UK Pound, CANADIAN Dollar, Deutsche Mark, JAPANESE Yen and EURO.

FCNR deposits stands for Foreign Currency Non-Repatriable account deposits. This is a Fixed Deposit Foreign Currency account and not a savings account. Deposits in this account can be made in any of the major currencies like US Dollar, UK Pound, Canadian Dollar, Deutsche Mark, Japanese Yen and Euro.

A returning Indian's NRE/FCNR accounts is USUALLY designated as a Resident account. Most BANKS allow these DEPOSITS to continue to run till maturity at the contracted RATE of interest.

A returning Indian's NRE/FCNR accounts is usually designated as a Resident account. Most banks allow these deposits to continue to run till maturity at the contracted rate of interest.

A Non-Banking Non-Finance COMPANY(Manufacturing Company) can accept DEPOSIT subject to following limits:-

UPTO 10% of aggregate of paid-up share capital and free reserves if the deposits are from shareholders or guaranteed by DIRECTORS.

Otherwise upto 25% of aggregate of paid-up share capital and free reserves. 

Non-Banking Finance Company can accept deposits upto following limits:-

Equipment Leasing Company can accept four times of its net OWNED fund.

A Non-Banking Non-Finance Company(Manufacturing Company) can accept deposit subject to following limits:-

Upto 10% of aggregate of paid-up share capital and free reserves if the deposits are from shareholders or guaranteed by directors.

Otherwise upto 25% of aggregate of paid-up share capital and free reserves. 

Non-Banking Finance Company can accept deposits upto following limits:-

Equipment Leasing Company can accept four times of its net owned fund.

Repayment of Fixed Deposit is the action of GIVING the ORIGINAL AMOUNT that is invested back to the investor when the specified time period is over. The process of repayment will complete the ENTIRE fixed deposit cycle.

Repayment of Fixed Deposit is the action of giving the original amount that is invested back to the investor when the specified time period is over. The process of repayment will complete the entire fixed deposit cycle.

No, at the END of DEPOSIT PERIOD principal is returned to the deposit holder ALONG with the applicable interest.

No, at the end of deposit period principal is returned to the deposit holder along with the applicable interest.

Yes, you can. Most banks offer a LOAN against FD. By USING the fixed deposit as a collateral for the loan you can get a loan at lower rates. The rates are usually PEGGED at a few percentage points higher than the fixed deposit. Usually banks advance up to 90% of the fixed deposit being HELD in a loan.

Yes, you can. Most banks offer a loan against FD. By using the fixed deposit as a collateral for the loan you can get a loan at lower rates. The rates are usually pegged at a few percentage points higher than the fixed deposit. Usually banks advance up to 90% of the fixed deposit being held in a loan.

Recurring Deposit or Cumulative Deposit Account - Under such bank account, a depositor is required to deposit (multiples of Rs 5/ or Rs 10/ are accepted in his account every MONTH. This deposit is usually available from 1 to 5 years. The rate of INTEREST charged by banks on such accounts depends on the period but is better than savings bank account because this account is like a Fixed Deposit Account. Banks INTRODUCE such deposit account to inculcate the habit of saving AMONG PEOPLE by offering.

Recurring Deposit or Cumulative Deposit Account - Under such bank account, a depositor is required to deposit (multiples of Rs 5/ or Rs 10/ are accepted in his account every month. This deposit is usually available from 1 to 5 years. The rate of interest charged by banks on such accounts depends on the period but is better than savings bank account because this account is like a Fixed Deposit Account. Banks introduce such deposit account to inculcate the habit of saving among people by offering.

Future VALUE of any FD is the ORIGINAL amount plus the compound interest thereon, STATED as of a specific future DATE.

Future Value of any FD is the original amount plus the compound interest thereon, stated as of a specific future date.

Deposit is a SUM of money lodged in a BANK for the purpose of earning INTEREST. A deposit is repayable according to TERMS of acceptance.

Deposit is a sum of money lodged in a bank for the purpose of earning interest. A deposit is repayable according to terms of acceptance.

Compound INTEREST is the ability of a FIXED deposit in INDIA to generate interest, which is then reinvested in ORDER to generate further earnings is known as compound interest.

Compound Interest is the ability of a fixed deposit in India to generate interest, which is then reinvested in order to generate further earnings is known as compound interest.

Each BANK or financial institution that is OFFERING FIXED DEPOSITS fixes its own deposit rates. The deposit rates depend upon the financial position of the bank and the conditions that impact the FUNDRAISING for the institution.

Each bank or financial institution that is offering fixed deposits fixes its own deposit rates. The deposit rates depend upon the financial position of the bank and the conditions that impact the fundraising for the institution.

You can WITHDRAW MONEY from your FD in MULTIPLES of RS 1,000/-. 

You can withdraw money from your FD in multiples of Rs 1,000/-. 

MATURITY is the time at which the amount in the fixed deposit has to be RETURNED to the investor. The fixed deposit is GIVEN for a time period that is decided at the time of making the investment and at the expiry this has to be given BACK.

Maturity is the time at which the amount in the fixed deposit has to be returned to the investor. The fixed deposit is given for a time period that is decided at the time of making the investment and at the expiry this has to be given back.

Tax-saving fixed DEPOSITS are a special category of fixed deposits where the investor GETS the benefit of a tax break when they INVEST a sum of money in the deposit. The MAXIMUM benefit is available up to an investment of Rs 1 lakh and there is a lock-in period of 5 YEARS in the deposit.

Tax-saving fixed deposits are a special category of fixed deposits where the investor gets the benefit of a tax break when they invest a sum of money in the deposit. The maximum benefit is available up to an investment of Rs 1 lakh and there is a lock-in period of 5 years in the deposit.

Yes, you will get FD receipt and PLEASE NOTE that you will not be issued a receipt for FD opened through Internet BANKING.

Yes, you will get FD receipt and please note that you will not be issued a receipt for FD opened through Internet Banking.

• Companies which offer interest higher than 15%.
• Companies which are not PAYING regular DIVIDENDS to the shareholder.
• Companies whose Balance Sheet SHOWS losses.
• Companies which are below investment grade (A or under) rating.

YES, they do GET extra benefits in the form of higher INTEREST rates.

Yes, they do get extra benefits in the form of higher interest rates.

Deposit time slab is the PERIOD for which a term deposit can be made with a bank. There are various time PERIODS for which this is possible like 14-29 DAYS, 181-364 days, 3-5 years and so on. The depositor has to SELECT one of these for the PURPOSE of their deposit.

Deposit time slab is the period for which a term deposit can be made with a bank. There are various time periods for which this is possible like 14-29 days, 181-364 days, 3-5 years and so on. The depositor has to select one of these for the purpose of their deposit.

FIXED DEPOSITS form a part of the DEBT INVESTMENT of an INVESTOR's portfolio.

Fixed deposits form a part of the debt investment of an investor's portfolio.