{"id":7944,"date":"2024-03-20T11:31:07","date_gmt":"2024-03-20T11:31:07","guid":{"rendered":"https:\/\/lxme.in\/?p=7944"},"modified":"2025-08-01T11:59:12","modified_gmt":"2025-08-01T11:59:12","slug":"types-of-fixed-deposit-account","status":"publish","type":"post","link":"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/","title":{"rendered":"Types of Fixed Deposit (FD) &#8211; How to Choose the Right FD For You?"},"content":{"rendered":"\n<p>All women want their money to be safe! This is where Fixed Deposits come in. But, did you know there are different types of FD account? In this blog, we\u2019ll discuss the types of FDs available and which one is the most suitable option for a woman.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#What_are_Fixed_Deposits\" >What are Fixed Deposits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Types_of_Fixed_Deposit\" >Types of Fixed Deposit<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Bank_FD\" >Bank FD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Tax_Savings_FD\" >Tax Savings FD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Senior_Citizen_FD\" >Senior Citizen FD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Corporate_FD\" >Corporate FD<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Factors_to_consider_while_choosing_the_right_one\" >Factors to consider while choosing the right one?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Interest_Rates_%E2%80%93\" >Interest Rates &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Duration_%E2%80%93\" >Duration &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Withdrawal_Rules_%E2%80%93\" >Withdrawal Rules &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Reputation_of_Institute_%E2%80%93\" >Reputation of Institute &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Extra_Benefits_%E2%80%93\" >Extra Benefits &#8211;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Which_FD_account_is_best\" >Which FD account is best?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Here_are_some_advantages_of_fixed_deposit_%E2%80%93_Corporate_FD\" >Here are some advantages of fixed deposit &#8211; Corporate FD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Should_you_put_all_your_money_into_fixed_deposits\" >Should you put all your money into fixed deposits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#FAQs\" >FAQ\u2019s<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#What_are_the_different_types_of_fixed_deposits\" >What are the different types of fixed deposits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Is_it_OK_to_have_multiple_FDs\" >Is it OK to have multiple FDs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/#Is_there_TDS_deduction_on_FD\" >Is there TDS deduction on FD?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Fixed_Deposits\"><\/span><strong>What are Fixed Deposits?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Fixed Deposits are fixed-term investment instruments that allow investors to deposit a lump sum amount for a specific period at a fixed rate of interest.<\/p>\n\n\n\n<p>Let\u2019s have a look at the types of FD account,<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Fixed_Deposit\"><\/span><strong>Types of Fixed Deposit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bank_FD\"><\/span><strong>Bank FD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bank FDs are conventional fixed deposits offered by banks. Here, an investor deposits a lump sum amount for a fixed period and at a certain interest rate. Different banks will have different tenures and different interest rates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax_Savings_FD\"><\/span><strong>Tax Savings FD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Tax saving FDs offer fixed deposit tax exemption up to Rs. 1.5 Lakh under Sec 80C. However, the tenure for this type of FD is 5 years and once you invest in this type of FD, you cannot withdraw your funds until the maturity period ends.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Senior_Citizen_FD\"><\/span><strong>Senior Citizen FD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>These FDs are offered to senior citizens and typically have an interest rate higher than conventional FDs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Corporate_FD\"><\/span><strong>Corporate FD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unlike Bank FDs, corporate FDs are fixed deposits offered by corporates or by non-banking financial corporations. They offer higher interest rates as compared to bank FDs and have more flexibility of tenure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factors_to_consider_while_choosing_the_right_one\"><\/span><strong>Factors to consider while choosing the right one?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interest_Rates_%E2%80%93\"><\/span><strong>Interest Rates &#8211;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Before making an investment decision, take a look at the interest rates being offered on your FD and compare it with FDs offered by other institutes. Different types of FDs offer different interest rates, for example, Corporate FDs offer a higher interest rate than Bank FDs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Duration_%E2%80%93\"><\/span><strong>Duration &#8211;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The tenure preferred by an investor depends on their investment goals, interest rate and liquidity requirements. A woman should evaluate her needs and then choose a FD that offers her preferred tenure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Withdrawal_Rules_%E2%80%93\"><\/span><strong>Withdrawal Rules &#8211;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An investor might need to withdraw their funds before the maturity date. Before choosing an FD, understand the withdrawal terms of the FD as well the penalties charged on early withdrawal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reputation_of_Institute_%E2%80%93\"><\/span><strong>Reputation of Institute &#8211;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Research the financial stability of the institution offering the FD. Check the FD\u2019s credit rating as well as the feedback provided by past customers to understand if the institution is trustworthy and has a good credit history.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Extra_Benefits_%E2%80%93\"><\/span><strong>Extra Benefits &#8211;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Some FDs provide additional benefits such as higher interest rates for women and senior citizens etc. Choose an FD that suits your requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Which_FD_account_is_best\"><\/span><strong>Which FD account is best?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Between the different FD types available, one can explore corporate FDs as they offer a relatively higher interest rate and flexibility to investors. Additionally, certain corporate FDs offer special rates for senior citizens and women.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Here_are_some_advantages_of_fixed_deposit_%E2%80%93_Corporate_FD\"><\/span><strong>Here are some advantages of fixed deposit &#8211; Corporate FD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Higher Interest Rate than typical Bank FDs<\/li>\n\n\n\n<li>More flexibility in terms of tenure and amount<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/lxme.onelink.me\/95JV\/mymoneytab5\" target=\"_blank\" rel=\"noopener\"><strong><em><u>LXME<\/u><\/em><\/strong><\/a><em>&nbsp;is now offering corporate FDs! Invest with LXME in CRISIL AAA-rated corporate FD through Bajaj Finance or in ICRA AA+ rated Corporate FD through Shriram Finance Limited and begin saving smartly!<\/em><em><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Should_you_put_all_your_money_into_fixed_deposits\"><\/span><strong>Should you put all your money into fixed deposits?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While, FD can be a safe investment option to save your money, it should be noted that interest rates offered on FDs don\u2019t normally beat inflation rates. This is why diversification is important. When you invest in Fixed deposits you should also put some money into other asset classes such as equity, debt, and gold, and diversify your portfolio.<\/p>\n\n\n\n<p>Also, check out the blog on <u>\u00a0adding nominee for fixed deposits<\/u>\u00a0<\/p>\n\n\n\n<p>In conclusion, the benefits of fixed deposit differ with different types of FDs. Choosing the correct FD for you involves evaluating your requirements for interest rate, duration, and withdrawal terms.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQ\u2019s<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1710924357088\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_are_the_different_types_of_fixed_deposits\"><\/span><strong>What are the different types of fixed deposits?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>There are different types of fixed deposits such as Bank FD, Tax Saving FD, Senior Citizen FD, Corporate FD etc.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1710924388611\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Is_it_OK_to_have_multiple_FDs\"><\/span><strong>Is it OK to have multiple FDs?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, you can open as many FDs as you\u2019d like. However, you should ensure that you also invest in other asset classes such as equity, debt, gold etc. and diversify your portfolio.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1710926500214\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Is_there_TDS_deduction_on_FD\"><\/span><strong>Is there TDS deduction on FD?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, TDS is charged on FD. For corporate FDs, if your interest income exceeds Rs. 5,000, TDS is deducted at 10%.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><strong><em>Share this blog with your family and friends if you find it insightful!!<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Download the<\/em><\/strong><a href=\"https:\/\/lxme.onelink.me\/95JV\/lxmeblog\" target=\"_blank\" rel=\"noopener\"><strong><em><u>&nbsp;LXME app <\/u><\/em><\/strong><\/a><strong><em>for more such content!<\/em><\/strong><\/p>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"What are the different types of fixed deposits?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"There are different types of fixed deposits such as Bank FD, Tax Saving FD, Senior Citizen FD, Corporate FD etc.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"Is it OK to have multiple FDs?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Yes, you can open as many FDs as you\u2019d like. However, you should ensure that you also invest in other asset classes such as equity, debt, gold etc. and diversify your portfolio.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"Is there TDS deduction on FD?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Yes, TDS is charged on FD. For corporate FDs, if your interest income exceeds Rs. 5,000, TDS is deducted at 10%.\"\n    }\n  }]\n}\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>All women want their money to be safe! This is where Fixed Deposits come in. But, did you know there are different types of FD account? In this blog, we\u2019ll discuss the types of FDs available and which one is the most suitable option for a woman. What are Fixed Deposits? Fixed Deposits are fixed-term <a href=\"https:\/\/lxme.in\/v1\/types-of-fixed-deposit-account\/\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  Types of Fixed Deposit (FD) &#8211; How to Choose the Right FD For You?<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":7948,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[655],"tags":[],"class_list":["post-7944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-saving"],"acf":[],"_links":{"self":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/7944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/comments?post=7944"}],"version-history":[{"count":2,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/7944\/revisions"}],"predecessor-version":[{"id":18643,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/7944\/revisions\/18643"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media\/7948"}],"wp:attachment":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media?parent=7944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/categories?post=7944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/tags?post=7944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}