FinanceShiksha

Bank Fixed Deposits

The safest way to grow your savings with guaranteed returns.

Why Choose Bank FDs?

Bank FDs offer capital protection and are not linked to market volatility. They are ideal for short to medium-term goals where safety is the priority.

Key Features

  • Safety: Insured up to ₹5 Lakhs by DICGC.
  • Liquidity: Loan against FD available (up to 90% of value).
  • Flexibility: Tenure ranges from 7 days to 10 years.
  • Senior Benefit: 0.50% extra interest for citizens above 60.

Cumulative vs Non-Cumulative

Option Payout Benefit
Cumulative At Maturity Power of Compounding (Interest on Interest)
Non-Cumulative Monthly/Quarterly/Yearly Regular Income stream for retirees
Expert Tip

FD Laddering Strategy: Instead of booking one large FD for 5 years, split it into 5 FDs of 1, 2, 3, 4, and 5 years. This ensures liquidity every year and averages out interest rate fluctuations.