Best Fixed deposits: When it comes to secure savings and investment instruments, fixed deposits (FDs) are among the most popular. A corpus is parked in an FD account, where it earns a fixed rate of interest. Because the interest rate on FDs is fixed, your returns are predictable. Choosing the FD with the best benefits is critical if you want to get the most out of your investment. It should also meet your requirements. Here’s some guidance on selecting the best type of Fixed deposits:

Special Fixed Deposit

These funds, like traditional FDs, are invested for specific time periods. The main difference is that you will earn more interest than with standard FDs if you do not withdraw the money within the specified time frame.

Senior Citizens Fixed Deposit

These are for people over the age of 60. They offer higher interest rates than standard FDs. Someone could work here for ten days or ten years.

Typical Fixed Deposit

The investor places his money in this FD account for a set period of time, which can range from seven days to ten years. Because the interest rate is fixed and predetermined, it is higher than that of a typical savings account. Conventional FDs can be used as collateral for loans and overdrafts. You can also withdraw funds before the account matures, but there is a fee.

Tax Savings Fixed Deposit

These FDs have a five-year lock-in period, so early withdrawals are not permitted. Furthermore, there are no loan or overdraft options for tax-free FDs. Section 80C of the Income Tax Act, on the other hand, allows you to request tax exemptions of up to Rs 1.5 lakh.

Regular Income Fixed Deposit

This type of FD is ideal if your income is low and you rely on money from bank accounts to pay your monthly bills. Interest payments can be made monthly or quarterly.

Flexi Fixed Deposit

These FDs combine the convenience and adaptability of a savings account and an FD. They combine the benefits of savings accounts and fixed-income investments (FDs), giving you the liquidity of savings accounts as well as the higher interest rates of FDs.

Cumulative Fixed Deposit

You can choose the interval at which interest is compounded with these FDs. The interest is added to the principal amount and is paid when the FD matures.

Non-Cumulative Fixed Deposit

With these FDs, you can set the frequency of interest payments. It is an excellent investment for those looking for a consistent source of income.