Fixed Deposit in India — Safe, Assured Growth
Open a Fixed Deposit online in minutes and lock in guaranteed returns — unaffected by market swings. DICGC-insured bank FDs and competitive NBFC rates from Shriram.
Open Your Fixed Deposit
What is a Fixed Deposit?
A Fixed Deposit is a savings instrument where you deposit a lump sum at a pre-agreed interest rate for a fixed tenure. Your principal and returns are fully guaranteed — unlike a savings account, the rate is locked for the full tenure so you know your maturity amount on day one.
FD vs Savings Account vs Recurring Deposit
Choose the right savings instrument — each serves a different financial goal.
Feature
Fixed Deposit
Savings Account
Recurring Deposit
Investment Type
One-time lump sum
Deposit / withdraw anytime
Fixed monthly instalments
Interest Rate (p.a.)
6.5–9.4% fixed at deposit
2.5–7% variable
5.5–8% fixed at opening
Liquidity
Low — penalty on early exit
High — withdraw anytime
Low — premature penalty
Minimum Deposit
₹1,000 (varies by bank)
₹0–₹10,000 (MAB)
₹100/month
Tenure
7 days – 10 years
No fixed tenure
6 months – 10 years
DICGC Insurance
Up to ₹5 lakh
Up to ₹5 lakh
Up to ₹5 lakh
Best For
Lump-sum, goal-based saving
Daily expenses, emergency fund
Monthly disciplined savers
How Fixed Deposits Work
Fixed deposits mature to the simple sum of capital plus interest — add the power of compounding working for you throughout the tenure.
Deposit a Lump Sum
Choose your bank or NBFC, decide the amount, and transfer your principal. Minimum deposit typically starts at ₹1,000.
Lock the Rate
Your interest rate is fixed at deposit — completely unaffected by future market movements or RBI rate revisions.
Earn Interest
Interest compounds quarterly (cumulative) or pays out monthly / quarterly (non-cumulative) as per your choice.
Choose Payout
Cumulative: receive everything at maturity. Non-cumulative: receive periodic interest while the principal stays invested.
Receive at Maturity
On maturity, principal and accrued interest are credited to your account. Choose to auto-renew or redeem in full.
Cumulative FD — Compounding
Interest is reinvested quarterly and compounded throughout the tenure. At maturity, you receive the full principal plus all compounded interest in one lump sum — ideal for building wealth without needing immediate income.
Non-Cumulative FD — Regular Payouts
Interest is paid out monthly or quarterly while your principal remains fully intact. Ideal for retirees or anyone who needs a predictable income stream — each payout brings regular liquidity without touching the invested corpus.
Types of Fixed Deposits in India
Different FDs serve different goals — income, tax saving, or higher returns. Compare them at a glance.
FD Type
Interest
Tenure
Tax
Best For
Cumulative FD
Compounded, paid at maturity
7 days – 10 years
TDS on interest
Long-term savings goal
Non-Cumulative FD
Monthly / quarterly payouts
7 days – 10 years
TDS on interest
Regular income needs
Tax Saving FD
~7% p.a.
5 years (lock-in)
₹1.5L deduction u/s 80C
Tax planning under 80C
Senior Citizen FD
+0.25–0.50% over general rate
Same as regular
TDS applies
Retired investors
NBFC FD (Shriram)
8.50–9.40% p.a.
1–5 years
TDS on interest
Higher-rate seekers
Flexi FD
FD rate on surplus above threshold
Ongoing
TDS applies
Liquidity + FD returns
FD Calculator
Find out exactly how much interest you will earn by investing in a Fixed Deposit for a chosen tenure.
Maturity
₹1,18,197
FD Benefits & Features
What makes Fixed Deposits the cornerstone of safe, predictable, and flexible investing.
Core Benefits
Guaranteed returns — rate locked at deposit, immune to market or rate changes
DICGC-insured up to ₹5 lakh per depositor per bank (bank FDs)
Flexible tenure — 7 days to 10 years to match any financial goal
Loan against FD — borrow up to 90% of value without breaking the deposit
Senior citizen benefit — extra 0.25–0.50% above the general rate
Tax Saving FD qualifies for ₹1.5L deduction under Section 80C
Added Flexibility
Premature withdrawal with a defined interest penalty
Nomination facility for all depositors
Partial withdrawal facility at select banks
Auto-renewal on maturity at then-prevailing rates
Online account opening — fully paperless, done in minutes
Digital FD receipt accessible at any time
Premature Withdrawal & Loan Against FD
Two ways to access money before maturity — one breaks the FD, the other keeps it fully intact.
Premature Withdrawal
Break your FD before maturity with a penalty — typically 0.50–1.00% below the rate applicable for the period held. Example: ₹1L FD at 8.5% for 2 years, broken at 18 months → earns approximately 7.5–8.0% for the 18-month period only.
Loan / Overdraft Against FD
Get an overdraft of up to 90% of FD value at FD rate + 1–2%. Your FD continues earning full interest while you use the loan — a smarter alternative to breaking the deposit. Interest is charged only on the drawn amount and days used.
How to Open a Fixed Deposit Online
Start in five steps — plus exactly what you'll need to complete your first FD.
Register
Create your Shriram account with your mobile number and email in under 2 minutes.
Choose an FD
Compare rates, tenures, and institution types. Pick the FD that fits your goal and risk profile.
Complete KYC
One-time PAN + Aadhaar-based digital KYC. Fully paperless — takes under 5 minutes.
Add Details
Enter deposit amount, choose your tenure, and select payout type (cumulative or non-cumulative).
Pay & Confirm
Transfer funds via net banking or UPI. Your digital FD receipt is generated instantly.
Documents & Setup
Everything you need to qualify and complete your FD account opening.
KYC Documents Required
PAN card (mandatory)
Aadhaar card for identity verification
Address proof — Aadhaar, Passport, or Utility Bill
Cancelled cheque or recent bank statement
Passport-size photograph (JPEG format)
What You'll Need to Set Up
Valid mobile number linked to Aadhaar
Net banking or UPI for fund transfer
Active bank account in your name
Valid email ID for account confirmation
Fixed Deposit FAQs
Is FD safe in India?
Bank FDs up to ₹5 lakh per depositor per bank are insured by DICGC — covering both principal and interest. NBFC FDs are not DICGC-insured but are regulated by RBI.
Is FD interest taxable?
Yes. FD interest is added to your total income and taxed at your applicable slab rate. TDS at 10% is deducted if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
Can I break an FD before maturity?
Yes, with a premature withdrawal penalty of 0.50–1.00% below the applicable interest rate for the period actually held.
What is a Tax Saving FD?
A 5-year lock-in FD eligible for ₹1.5 lakh deduction under Section 80C. The interest earned is fully taxable. Premature withdrawal is not permitted.
Cumulative vs non-cumulative FD — what is the difference?
Cumulative FD pays principal + compounded interest at maturity — ideal for wealth building. Non-cumulative FD pays interest monthly or quarterly while the principal remains invested — suitable for regular income.
What is the maximum DICGC insurance amount?
DICGC insures up to ₹5 lakh per depositor per bank, covering both principal and interest across all accounts held at that bank.
Do senior citizens get higher FD rates?
Yes. Senior citizens aged 60+ receive 0.25–0.50% above the general rate at most banks and NBFCs.
Can NRIs invest in FDs in India?
Yes — through NRE FDs (interest tax-free in India, fully repatriable) or NRO FDs (interest taxable in India). FCNR FDs are denominated in foreign currency.
Need a clearer direction?
Our FD specialists will help you choose the right tenure, institution, and payout option for your goals.
Open Fixed Deposit Online — Guaranteed Returns
Compare FD rates, open digitally, and start earning safe, predictable returns today with Shriram Financial Services.