It is a financial instrument offered by banks or NBFCs which provide investors a high rate of interest than a regular savings account till a given or decided maturity date. You may or may not need to create a separate account. The main feature of Fixed Deposit account is that the funds cannot be withdrawn for a fixed period of time. Tenure or term has a predetermined allotted interest rate.
What is Fixed Deposit Schemes?
Here are the schemes available to buyers in Fixed Deposits-
Simple Fixed Deposits-
These are the standard deposits that provide a range of tenures, from 7 days to years.
Special Fixed Deposits-
These are the special tenure deposits. These allow you to invest money for a special period such as 190 days, 290 days, 390 days and so on.
Tax Saving Fixed Deposits-
Tax saving fixed deposits gives you benefits under section 80C of the Income Tax Act; the interest earned on Fixed Deposits is completely taxable.
Benefits of Having Fixed Deposit Account-
Investing in Fixed Deposits is the easiest way to multiply your money. Fixed Deposits are the safest investment option and offers several benefits.
- These encourage a habit of saving money in a person.
- There is higher interest rate than a regular Savings Account.
- For your investment, you get assured returns.
- You can choose to receive the interest paid monthly, annually or at maturity.
- You can invest your money for 30 days to 10 years.
- You can have more than one Fixed Deposit Account.
Best Fixed Deposit Rates Offered in India-
|Institution||Interest per annum||Duration||Investment Required||Investor Type||Tax Status|
|Yes Bank||7.15||18 Months 8 Days to 18 Months 18 Days||Less than Rs. 1cr||General||Taxable|
|Bandhan Bank||7.15||Above 1 year to less than 2 years||Less than Rs. 1 cr||General||Taxable|
|Indus Ind Bank||7.15||1 year to below 1 years 2 months||Less than Rs. 15 lakh||General||Taxable|
|Axis Bank||7.00||16 months to less than 17 months||Less than Rs. 1 cr||General||Taxable|
|Union Bank of India||7.00||1 years||Less than Rs. 1 cr||General||Taxable|
|Punjab National Bank||6.90||1 year||Less than Rs. 1 cr||General||Taxable|
|Oriental Bank of Commerce||6.85||1 year to less than 2 years||Less than Rs. 1 cr||General||Taxable|
|Dena Bank||6.80||Above 1 year to less than 2 years||Less than Rs. 1cr||General||Taxable|
|HDFC Bank||6.80||1 year 1 day – 1 year 3 days||Less than Rs. 1 cr||General||Taxable|
|ICICI Bank||6.75||1 year to 389 days||Less than Rs. 1 cr||General||Taxable|
|Canara Bank||6.75||1 year||Less than Rs. 1cr||General||Taxable|
|UCO Bank||6.65||1 year||less than Rs. 1 cr||General||Taxable|
|Allahabad Bank||6.60||1 year to less than 2 years||Less than Rs. 1 crore||General||Taxable|
|Central Bank of India||6.60||1 year to less than 2 years||Less than Rs. 1cr||General||Taxable|
|Syndicate Bank||6.50||1 year exact||Less than Rs. 1cr||General||Taxable|
|State Bank of India (SBI)||6.50||456 days to less than 2 years||Less than Rs. 1 cr||General||Taxable|
|HSBC||6.25||400 days||Less than Rs. 1cr||General||Taxable|
|Citi Bank||5.25||401 days to 540 days||Less than Rs. 1 cr||General||Taxable|
What is Life Insurance?
It is an agreement between two parties namely, an insurance company and policy holder where the insurance company assures to pay an assured sum of money to the nominated beneficiary in case of sudden unfortunate demise of policy holder during the stipulated time period of the policy. In exchange, the policy holder pays premium either on lump sum basis or regularly. Some conditions like critical illness or terminal illness and others may affect the payment of benefit.
Types of Life Insurance Plan-
There are three different types of Life Insurance Policies-
Term Life Insurance-
This provides financial protection for a specific time period such as 10 years or 20 years. After this, policies may provide continued coverage, at a higher rate of premium.
Universal Life Insurance-
It gives you lifetime coverage. This policy is flexible enough to allow you to increase or decrease your premium amount throughout the lifetime.
Whole Life Insurance-
This also provides you lifetime coverage. This has a cash value and tax-deferred savings component.
Life Insurance Policies Available in India
|Life Insurance Plans||Entry Age (Min/Max)||Policy Term (Min/Max)||Sum Assured (Min/Max)|
|Aegon Life iTerm Plan||18/75 years||5/40 years||10 Lacs/NA|
|Aviva I-Life Plan||18/55 years||10/35 years||25 Lacs/NA|
|Bajaj AllianziSecure||18/70 years||10/30 years||20 Lacs/NA|
|Bharti AXA eProtect Term Plan||18/75 years||10/30 years||25 Lacs/NA|
|HDFC Click2Protect Plus||18 /65 years||10/30 years||10 Lacs/10 Crores|
|HDFC Life Sanchay||30/45 years||15/25 years||1,05,673/NA|
|HDFC SL Crest||14/55 years||10/10 years||(7 or 10) x Annual Premium/20 x Annual Premium|
|ICICI Pru iProtect||20/75 years||10/30 years||3 Lacs/NA|
|Kotak Life Preferred e-Term||18/75 years||10/40 years||25 Lacs/NA|
|LIC AmulyaJeevan||18/60 years||5/35 years||25 Lacs/NA|
|LIC New JeevanAnand||18/50 years||15/50 years||1 Lac/NA|
|LIC Term Plan||18/75 years||10/35 years||50 Lacs/NA|
|Max Life Online Term Plan||18/70 years||10/35 years||25 Lacs/100 Crores|
|SBI eShield Plan||18/70 years||5/30 years||20 Lacs/NA|
|SBI ShubhNivesh Plan||18/60 years||5/30 years||75000/NA|
Fixed Deposits provide a high rate of interest to the investor for a determined maturity period. In this one cannot withdraw money for a fixed period of time. Life insurance provides financial security to the family in case of sudden demise of the policy holder. The policy holder needs to pay premium regularly or on lump sum basis.