Banks and financial institutions offer various types of fixed deposits to cater to different needs. The major types are summarised below.
| Type | Description |
|---|---|
| Regular FD | Standard deposit with fixed tenure and rate; premature withdrawal allowed |
| Tax-saving FD | 5-year lock-in; eligible for Section 80C deduction up to ₹1.5 lakh |
| Flexi/Sweep-in FD | Linked to savings account; offers liquidity and FD returns |
| Senior citizen FD | Special scheme for individuals aged 60+; offers higher interest |
| NRE/NRO FD | Deposits for NRIs; NRE interest tax-free and fully repatriable; NRO interest taxable |
| Non-callable FD | Locked until maturity; offers slightly higher rate |
| Company FD | Issued by NBFCs and corporates; higher returns but higher risk |
Each type of FD serves a specific purpose. Evaluate your liquidity needs, tax considerations and risk appetite before choosing the right deposit.
