Fixed deposits with Banks
- Offered by Commercial banks (Public and Private Sector).
- Regulated by Reserve Bank of India (RBI).
- Risk: Safe and low-risk investment. Covered under Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh.
- Return: Interest rates usually range from 3% to 8% per annum. Higher interest for Senior citizen.
- Liquidity: Premature withdrawal allowed with penalty. FDR can be used as collateral for loan, OD against FD can be taken.
- Tax-saving FDs (under Section 80C) for above 5 years.
- Suitable for investors looking for low risk investment.
Fixed deposits Small Finance Banks (SFBs)
- Offered by RBI-licensed SFBs targeting underserved segments.
- Regulated by Reserve Bank of India (RBI).
- Risk: Low to moderate risk investment. Covered under Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh.
- Return: Higher interest rates compared to traditional banks (up to 8%–9% or more). Higher interest for Senior citizen.
- Liquidity: Premature withdrawal allowed with penalty. FDR can be used as collateral for loan, OD against FD can be taken.
- Suitable for investors seeking slightly higher returns and willing to accept low to moderate risk.
Fixed deposits with Non-Banking Financial Companies (NBFCs)
- Offered by NBFCs registered with RBI.
- Regulated under RBI guidelines for NBFCs (but less tightly than banks).
- Risk: Generally higher risk due to no DICGC insurance. Credit ratings (CRISIL, ICRA, etc.) crucial in assessing safety.
- Return: Attractive interest rates (can go up to 9–10% or more).
- Liquidity: Less liquidity; stricter penalty for premature withdrawals.
- Suitable for investors seeking higher returns and willing to accept moderate to high risk.
Comparison Summary
Feature
Regulation
Interest Rates
Risk Level
Insurance (DICGC)
Premature Withdrawal
Use as Loan Collateral
Banks
RBI
Moderate
Low
Yes (₹5 lakh)
Allowed (with penalty)
Yes
SFBs
RBI
Higher than banks
Low–Moderate
Yes (₹5 lakh)
Allowed (with penalty)
Yes
NBFCs
RBI (less strict)
Highest
Moderate–High
No
Restricted
Yes
Interest rates
Institutions
HDFC Bank
Shriram Finance Ltd
Bajaj Finance Ltd
Upto 1 year
3.00% – 6.14%
7.65%
7.00%
1 - 2 years
6.66% – 6.87%
7.65% – 7.90%
7.00% – 7.35%
2 - 3 years
6.87%
7.90% -8.40%
7.20% – 7.40%
Who Should Invest in Fixed Deposits?
Fixed deposits (FDs) are ideal for individuals seeking capital safety, predictable returns, and low risk. While they may not offer high growth like equities, they serve a vital role in a balanced financial plan.
Here’s who should consider investing in FDs—and why:
✅ 1. Risk-Averse Investors:
- Why: FDs are not affected by market volatility.
- Perfect For: Individuals who prioritize capital protection over high returns.
✅ 2. Senior Citizens:
- Why: Senior citizens often rely on fixed income for daily expenses.
- Benefit: Many banks and institutions offer higher interest rates (often +0.25% to +0.50%) to seniors.
✅ 3. Individuals with Short-Term Goals:
- Why: FDs are ideal for short- to medium-term goals (e.g., saving for a wedding, vacation, or emergency fund).
- Benefit: Guaranteed returns and fixed maturity periods.
✅ 4. People Seeking a Steady Income:
- Why: FDs can pay interest monthly, quarterly, or annually.
- Benefit: Useful for retirees or anyone needing regular cash flow.
✅ 5. First-Time or Conservative Investors:
- Why: FDs are a simple and familiar investment option.
- Benefit: No market knowledge is required, and the risk is minimal.
✅ 6. Tax-Saving Investors:
- Why: Some fixed deposits (5-year tax-saving FDs) qualify for deductions under Section 80C in India (up to ₹1.5 lakh).
- Note: These come with a 5-year lock-in period and no premature withdrawal.
✅ 7. People Looking to Diversify:
- Why: FDs offer stability and can complement a higher-risk portfolio (like equities or mutual funds).
- Benefit: Helps reduce overall portfolio volatility.
✅ 8. NRIs (Non-Resident Indians):
- Why: NRIs can invest in NRE/NRO FDs for capital preservation and repatriation.
- Benefit: Tax-free interest on NRE FDs in many cases.
Summary:
Fixed deposits are best suited for anyone who values stability, guaranteed returns, and low-risk investments. Whether you are planning for the short term or simply want to preserve wealth securely, FDs are a reliable choice.
Why Choose us
Investing in fixed deposits through a trusted advisor like us provides you with better choices, smarter decisions, and unmatched convenience—all backed by expert support.
✅ 1. Access to Multiple Banks & NBFCs
Instead of being limited to one bank, we give you access to FDs from multiple trusted banks and financial institutions—all in one place. This means more options and better interest rates.
✅ 2. Higher Interest Rates
As a advisor, we often get access to special rates or exclusive FD offers that may not be available directly to the public. You benefit from higher returns on your deposits.
✅ 3. 100% Paperless & Hassle-Free Process
Open, renew, or withdraw FDs completely online. We make the entire process quick, secure, and paperless, saving you time and effort.
✅ 4. Safety & Security
All the fixed deposits we offer are from RBI-regulated banks and NBFCs, many of which are covered under DICGC insurance (₹5 lakh per depositor per bank) for added peace of mind.
✅ 5. Single Dashboard for All Your FDs
Track, manage, and renew all your FDs from one convenient dashboard—no need to juggle between multiple bank accounts or platforms.
✅ 6. Expert Guidance
Our team helps you choose the right FD based on your needs—tenure, liquidity, interest payout options, and tax implications.
✅ 7. Tax-Efficient Options
We guide you through tax-saving FDs (like 5-year tax-saver FDs under Section 80C) and other low-risk income options, so you can invest smarter.
Bottom Line:
We simplify fixed deposit investing with better rates, better service, and better control—so you can grow your money safely and conveniently.