Fixed Deposits
Keep deposits, interest rates and maturity dates in view.
What it is
A fixed deposit (FD) is money placed with a bank or a deposit-taking company for a set period at an interest rate fixed when you open it. You receive the principal and interest at maturity, or interest at regular intervals.
Who it may be useful for
- People who want a known interest rate for a known period.
- Money you will need at a specific date, such as a planned expense.
- Savers who prefer not to take market risk with part of their money.
Whether it suits you depends on your own goals and circumstances.
Benefits
- The interest rate does not change during the deposit term.
- A choice of tenures, from a few months to several years.
- Five-year tax-saver FDs qualify for a Section 80C deduction under the old tax regime.
Things to consider
- Withdrawing before maturity usually reduces the interest you earn. Tax-saver FDs cannot be withdrawn for five years.
- Interest is taxed at your income-tax slab rate, and the institution may deduct TDS.
- Deposit insurance from DICGC covers bank deposits up to ₹5 lakh per depositor per bank. It does not cover company deposits.
How Sahi Savings helps
- Record your deposits with their rate, tenure and maturity date.
- See how much of your savings sits in deposits compared with other assets.
- Know which deposits are maturing soon so you can decide what to do next.
Steps
- Add your existing deposits in the app.
- Check the rate, tenure and maturity date for each one.
- Review upcoming maturities and plan renewals or withdrawals.
Questions
Are fixed deposits risk-free?
No investment is entirely free of risk. FD returns are fixed, but repayment depends on the institution holding the deposit. Deposit insurance applies only to banks and only up to the DICGC limit.
How is FD interest taxed?
Interest is added to your income and taxed at your slab rate. The institution deducts TDS when interest crosses the threshold set under the Income Tax Act.
Who issues the deposit?
A deposit is always issued by the bank or company you place it with, under that institution’s terms. Read them before you invest.
Track your deposits in the app
Download the app, enter your basic details and set a passcode. Then add your tax regime and investments to see everything together.
