Is FD completely safe? ▼
Yes, FDs are backed by DICGC insurance up to ₹5 lakh per depositor per bank. Government banks are extremely safe.
Can I withdraw FD before maturity? ▼
Yes, but banks charge a penalty of 0.5-1% on interest rate. Some FDs (like tax‑saving FD) have a mandatory lock‑in.
How much extra interest do senior citizens get? ▼
Most banks offer 0.50% additional interest for individuals aged 60+ years. Some small finance banks give up to 0.75% extra.
What is TDS on FD interest? ▼
Banks deduct 10% TDS if total interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your income is below taxable limit.
Which bank gives highest FD interest? ▼
Small finance banks (AU, Equitas, Ujjivan) offer 8-9%. Among large banks, HDFC, ICICI offer ~7.1% for 5 years. Post Office Time Deposit offers 7.1% (5 years).
What is cumulative vs non‑cumulative FD? ▼
Cumulative FD pays interest at maturity (better for compounding). Non‑cumulative pays interest monthly, quarterly or half‑yearly – suitable for regular income needs.
Does FD have tax benefits? ▼
Only 5‑year tax‑saving FDs qualify for deduction under Section 80C (up to ₹1.5 lakh). Interest earned is taxable.
How is FD interest calculated? ▼
Using compound interest formula: A = P × (1 + r/n)^(n×t). Our calculator does it instantly with quarterly/monthly/yearly options.
Can I open FD online? ▼
Yes, all major banks allow online FD opening through net banking or mobile app. You need an existing savings account.
What is the minimum amount for FD? ▼
Most banks allow FD starting from ₹1,000. Some small finance banks start from ₹500.
Is FD better than PPF? ▼
FD offers liquidity and no lock‑in, but PPF gives tax‑free returns. For retirement, PPF is better; for emergency funds, FD is better.