Fixed Deposits offer fixed interest rates over a specified tenure, ensuring that you receive a predictable return on your investment. The interest is typically paid out quarterly, annually, or at maturity, depending on the FD scheme.
Some Fixed Deposit schemes, such as tax-saving FDs, qualify for tax deductions under Section 80C of the Income Tax Act. These schemes offer a 5-year lock-in period and are ideal for investors looking to save on taxes while earning interest.
FDs are considered one of the safest investment options in India, as they are backed by the Deposit Insurance and Credit Guarantee Corporation (DICGC), which insures deposits up to ₹5 lakh per depositor per bank.
FDs offer flexible investment tenures ranging from 7 days to 10 years, allowing you to choose a tenure that aligns with your financial goals.
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