NBFCs and banks offer different kinds of Fixed Deposits:
• Deposit your money for a fixed tenor, ranging from 1 week to 10 years.
• The rate of interest is pre-determined, but higher than the savings account.
• The principal amount of the FD gets tax exemption of up to Rs.1.5 lakh in a year.
• Your investment is locked for a period of five years and funds can’t be withdrawn before the maturity date.
Senior Citizens FD:
• This FD scheme is for people above the age of 60 years, who can earn an additional interest rate of 0.35%.