In today’s society, where there is a dearth of jobs that assure you stability in income except in Government jobs, a fixed deposit is more than a necessary personal investment. All the leading banks in India offer fixed deposit schemes to help people make a saving for the future. With so many options and products, in the fixed deposit category one can be confused and clueless unless you have access to ample information on the same. One way of insuring that, is by opening a fixed deposit account online and maintaining it online. Not only does it allow you to compare products and gain access to kinds of information as well as helps clear queries but make the application and maintenance processes easier for the account holder.
Types of Fixed Deposit Schemes You Can Choose From Online
There are 3 main types of fixed deposits available from a bank online:
Simple Fixed Deposit:
The interest rates vary depending on the bank but generally the tenures for simple fixed deposits are anywhere between a 7 days to 10 years.
Special Fixed Deposits:
These fixed deposits have a different calculation when it comes to tenures and are generally in denominations of days such as 300 days, 700 day or 1000 days.
Tax Saving Fixed Deposits:
As the name suggests, these financial products help you gain benefits on taxes under Section 80C, however keep in mind that the interest that you earn from a fixed deposit is fully taxable.
Top 5 Things You Need To Know Before You Make an Online Fixed Deposit
Here are 5 things you need to know and make sure of, before you opt for an online fixed deposit scheme from a bank:
Go for A Fixed Deposit with a Long Tenure:
The longer your tenure for fixed deposit, the more interest the bank is going to reward you with. So, make sure that, even if the amount payable every month is small, you pay them over a long tenure. Banks that are often well-known come up with special deposit periods to help enhance their ratio of deposit by offering special returns on specific tenures. Do look out for them.
Choose A Bank with High Credit Ratings:
When you want to get a fixed deposit from a bank make sure the bank has high credit ratings. This will ensure the safety of your bank and a rewarding experience when it comes to dealing with a bank. You can research that when researching fixed deposits online.
Look out for Additional Benefits:
A lot of banks give you the advantage of getting a loan facility on fixed deposits when you are in urgent need of cash. Some banks may even offer insurances such as Personal Accident Cover as a free product for the customers.
Liquidity or Premature Withdrawal of Fixed Deposit:
You have to check the premature withdrawal clause of the FD as banks provide higher rates of interest generally, but the withdrawal fee may not be revealed. It is important to negotiate exit load on premature withdrawals and compromise the liquidity aspect. You can check out this clause online from the bank and then make your decision.
Makes Sure Your Fixed Deposit Helps Your TDS Look Good:
Once you have made an FD, you will declare the income through FD in the section Income from other Sources when you fill your tax returns. Under the Form 26AS the TDS payments deducted on your FD will be listed. This helps to make sure you save a little more on your taxes by treating your FD like a regular income.
Top 5 Reasons to Invest in a Fixed Deposit Online
Yet with so many things to ensure fixed deposit is a safe and secured personal investment method especially when you have it online. Here are the reasons, why:
Online Advantage to Choose:
It is very easy to apply for an FD online and one can do this through net banking or fill out an online application form. Many banks provide the facility to customers to open a term deposit online.
Easy Payment Options:
You can apply with the help of any digital payment options, be it credit card, ATM/ Debit Card and net banking. You can also link your bank account where the funds are pulled out automatically and you are simply notified about the payment.
Some banks offer extra benefits when you apply for a fixed deposit online. This includes loan facilities in case of emergencies and insurance aids like personal accidental cover etc.
Save On Taxes:
Under the Section 80C of the Income Tax Act, of India, a fixed deposit investment of up to a maximum of Rs.100,000 for up to 5 years have eligibility for tax deductions. You can file the tax deduction information in your income tax returns portfolio online. The tax saving fixed deposits are especially good for saving money and tax at the same time.
Safest Personal Investment:
Though the returns or rates of interest that you are paid are not very high, it is safe against other options such as Gold or company equities. Banks offer enough security of your money if they institution is old and has a high credit rating.
So, what are you waiting for? Check out the wide variety of fixed deposit schemes offered on BankBazaar from different banks and financial institutions and choose the fixed deposit that suits your need, the best.
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I have invested some money as a Fixed deposit in HDFC Bank and the interest rate is not that much great because they are giving interest as compared to others. I have invested the money of Rs. 3L and there is a locking period of 5 years. Its 7% interest rate. If they are increasing the interest rate, it would be fine. Since I do all my transactions with this bank, I have selected same for my FD as well.
I have chosen my fixed deposit scheme from State bank of India because I'm maintaining my salary account with them and they provided rate of interest is fine for me. I have invested the money of Rs. 2.75 lakhs. There is a locking period of 45 days. They are giving interest rate of 4.5%. Overall, I'm satisfied with their services.
I have been investing the money of Rs. 3 lakhs for the fixed deposit. I have selected Kotak mahindra bank for the FD because their net banking facility is very different when i compared to other. I can access everything regarding the account hence its easy to handle the transactions. I'm not sure about the interest rates. 7 months before, i have invested the money.
Its because of the competitive interest rates, i have selected the Fixed deposit in Kotak Mahindra bank. I have invested the fixed deposit 1.5 years ago and there is a lockin period of 5 years. They have invested the amount of Rs. 7.5 % and the employees are helpful in the branch.
I have a Fixed deposit in Axis bank. I have invested the money of Rs. 10000 for two FDs. There is a lockin duration of 1 year. They are giving a interest rate of 7%. Through net banking, i have activated this Fixed deposit. There is no tax benefits available. Axis bank service has been good. Overall, I'm happy about their services.
Since last 15 years, i have a account with Oriental bank of commerce thats the reason i have invested the money in fixed deposit with the same bank. I have invested the amount of Rs. 11 lakhs. They are giving the interest rate of 6.5%. There is no locking period but i have chosen the duration of 1.5 years. There is no additional charges deducted for this fixed deposit.
Interest rate is very low in Indian post office Fixed deposit scheme because they are providing only 8.5%. I have chosen this office because of the child benefits. I have invested the money of Rs. 1.5 years. Its 3 years lock in period. Overall, I'm satisfied with the service provided by post office employees.
I have invested the money in SBI for a fixed deposit and based on my wife recommendation i have chosen it. They are providing the interest rate of 7.25%. They have option to select the lock in period in that i have chosen 5 years. We had visited their branch and the response was good.
Its easy accessible and to redeem so that i have invested the money in Fixed Deposit with HDFC BANK. I have invested the money of Rs. 2.5 lakhs and they have provided me a interest rate of 7.5%. There is no locking period. I didn't got any additional charges till now.
I have paid the money of Rs. 4.5 lakhs as a fixed deposit in the Indian post office. For the safety purpose, i have chosen the post office account. They are offering me a interest rate of 7.9%. There is a lockin period of 5 years. If i withdraw the money in 1 year, they will reduce the interest rate of 2% and after 3 years, its 1%.
Interest rates are less in Central Bank of India so I had taken a fixed deposit. I have invested the money of Rs. 1 lakh in my wife's name. Branch is near from my place so I have chosen this bank. Yearly once, I get the money of Rs. 6,765 for the interest. There is a locking period of 1 year.
I am doing Fixed Deposit with ICICI BANK and its been around 5years. They haven't been paying good interest and its more or less same like other banks as I used to hold my salary account with ICICI, I have decided to be with one bank. There is no locking period and its flexible. They do give good support and the app is user friendly. Even deposit account can be opened through i-mobile or net banking itself.
I had a Fixed Deposit in State Bank of India, I have completed the tenure before 3months ago. I have no issues with the customer service. They are given me 7% interest rate for 2years. There is no profit and processing fee. I got an online access, where I can check the interest rate anytime on the YONO app or else SBI online.
I have invested some money through FD. My salary account is in SBI so i have a zero ATM charges and the limit is not actually set by SBI. They do have short term FDs which is pretty good. I have invested the money of Rs. 60000 and the interest rate is 10.01% for the tenure period of 16 months. There is no lockin period. There is no hassle to getting the money back.
I have invested the money in Dena bank through Fixed deposit and the growth is not that much good. They are not taking any hidden charges. Only because of the Government undertaken bank, i have selected them. They are providing a interest rate of 6% per annum. I have invested the money of Rs. 2 lakhs. There is a lockin period of 1 year.
I have opt for fixed deposit for the tax saving purpose because I have chosen five years tenure with AXIS Bank, still its going on. Only once I Invested my money it has the locking period of five years. I have option to check my transactions through mobile app. But I have concern about the interest rate is very lesser for this FD.
I had fixed deposit with SBI then I withdrawn the amount, I done Rs. 3 lakhs of investment on my daughter name then I taken the liquidity to purchase the land, at the time I struggled a lot to take that money because the process was difficult to withdrawn the money after seven months of tenure.
I had a Fixed Deposit with Union Bank of India and its closed 18 to 19 months due to personal reasons. I am doing investment but my experience is not good with FD account. In my home town, there is no other banks so just decided to go with this bank. The returns are good.
I have one FD with HDFC, I deposited Rs. 1 lakh, I was opt for 45 days of tenure. Finally I got 6.25% of interest for 45 days. It won't cover the tax, if we need tax benefits we should go for five years term. I can track the details through netbanking, on the maturity date the amount credits automatically in the account. Even the notification can customized.
HSBC staff wrongly pre closed my fixed deposit .. and calculated the interest rates wrongly and when asked them for clarification never got back .. even after following up with them repeatedly for more than 3 months.. would highly recommend not using their services.
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A V kumar
Reviewed on Aug 24, 2019