A fixed deposit (FD) offers predictable returns for a chosen tenure. You lock principal for a period and receive interest as cumulative or periodic payout, subject to issuer terms.
Choosing tenure and payout style
- Short tenures help near-term liquidity planning
- Longer tenures lock rates but reduce flexibility
- Cumulative grows value via compounding
- Non-cumulative provides periodic income
Bank vs NBFC deposits
Compare issuer credit profile, interest rates, and premature withdrawal terms. Higher rates can reflect higher risk. Diversify large allocations instead of concentrating all funds in one issuer.
Tax and post-tax return
FD interest is generally taxable per your slab. Evaluate post-tax return, not only headline rate, when comparing against other fixed-income alternatives.
Liquidity and penalties
- Check premature closure penalty before booking
- Understand auto-renewal settings on maturity
- Keep emergency cash separate from locked FDs
Disclaimer
Aroundu Wealth Capital provides educational information and advisory support. Deposit rates and terms are set by issuing institutions. Please review official product terms before booking.