Private sector banks and other financial institutions may offer a slightly higher rate of interest than the public sector banks. This is to make sure that your money is safe. If you are to invest in FDs provided by an NBFC or HFC, then check the ratings of the financial institution provided by agencies, such as CRISIL. On the other hand, they have a choice of reinvesting their money for another term.Īll scheduled commercial banks and some NBFCs and HFCs in India offer fixed deposit accounts. Once the tenure of the deposit ends, investors can withdraw their investment. The rate of interest provided on FDs is much higher than that of a regular savings bank account. In return, they would get a fixed rate of interest throughout the investment tenure.
Under this account, investors would deposit a lump sum over a period. What is a Fixed Deposit (FD) Account?įixed deposit accounts are an investment instrument offered by banks and other financial institutions. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower. RBI has announced a new rule applicable to unclaimed, matured FD accounts.
