Contracted income, for the predictable part of a portfolio
A fixed deposit pays a stated rate for a stated term. Understanding tenure, payout structure and issuer quality matters more than chasing the highest number.
What a fixed deposit is
You place a sum with an institution for an agreed period, and it pays interest at an agreed rate. At maturity the principal is returned along with any interest not already paid out.
Deposits issued by companies (corporate FDs) generally offer higher rates than bank deposits, and carry the credit risk of the issuing company. Credit ratings from recognised agencies are one input in assessing that risk.
Deposits are contractual, not risk-free. We do not describe any deposit as guaranteed or completely safe.
Tenure, interest and payout options
Tenure
Typically 12 to 60 months. Longer terms may carry higher rates but reduce flexibility.
Cumulative
Interest accumulates and is paid with the principal at maturity, compounding in the interim.
Non-Cumulative
Interest is paid out monthly, quarterly, half-yearly or annually as regular income.
Premature Withdrawal
Usually permitted after a lock-in, often with a rate reduction or penalty.
Senior Citizen Rates
Many issuers offer an additional rate for senior citizens, subject to their terms.
Taxation & TDS
Interest is taxable as per your slab, and tax may be deducted at source by the issuer.
Why investors use FDs
- A contracted rate, known at the time of investment
- Choice between accumulation and regular income
- Simple to understand and administer
- Useful for near-term goals and portfolio stability
What to check first
- Issuer credit rating, track record and financial strength
- Whether the deposit is covered by any deposit insurance
- Liquidity: lock-in period and premature withdrawal terms
- Post-tax return, not the headline rate
- Inflation: a fixed rate may not preserve purchasing power
- Concentration: how much of your capital sits with one issuer
Interest rates and terms are subject to change. Please contact our team for the latest rates and availability.
Enquire about current fixed deposit options
Share your amount, preferred tenure and payout requirement, and our team will revert with currently available options.
Important: Fixed deposits carry issuer credit risk and are not described here as risk-free or guaranteed. Rates, tenures and availability are indicative and subject to change. Please read the issuer's offer document before investing.
Speak with an advisor before your next investment decision.
A complimentary consultation to understand your objectives, horizon and risk profile — no obligation, no pressure.