What are the types of fixed deposits that are provided by different commercial banks?

Fixed deposit offers a low-risk and reliable source of wealth accumulation with time. if you invest in FD scheme you would receive assured returns within a fixed time and can grow their corpus.

There are different types of fixed deposit available to cater to the diversified needs of the investors. These areas mentioned below -

Regular deposit - these provide a fixed interest rate throughout the lock-in period and can be booked with a minimum amount of just Rs. 25,000. Investors can choose a flexible tenure between 12 to 60 months to book the deposit. Usually, lenders such as NBFCs offer a higher interest rate on FD starting from 8.75% onward.

Tax saving deposit - they offer a tax exemption on the principal amount of up to Rs. 1.5 lakhs. However, the investment cannot be withdrawn before the lock-in period.

Senior citizen deposit - this offers a higher interest rate of 0.35% on the base rate available to senior citizens who are 60 years old and above.

Withdrawal-specific deposit - these are of 2 types - cumulative FD (where deposit+interest income can be withdrawn at the time of maturity) and non-cumulative FD (where deposit+interest income can be withdrawn at monthly, quarterly, half yearly and annual intervals).