Fixed deposits is one of the most preferred investment options for the people. Fixed deposits are also known as term deposits. Because in fixed deposits money is deposited for a fixed time. If you want to invest in a fixed deposit, then you should consider these things. A customer who has a savings account with the bank can open a term deposit account. Many banks offer the option of opening FDs when they have a savings bank account.

How much money can you invest
Each bank has different rules for depositing money in fixed deposits. There is no limit on maximum amount to be deposited in FD.
Investment from 7 days to 10 years
The minimum and maximum time for FD varies from one bank to another. Generally FDs can be invested for a minimum period of 7 days and for a maximum period of 10 years. You can choose the period for which you want to keep your FD as per your requirement.

Interested period given by different banks

IDFC First Bank 8%
RBL Bank 7.60%
Lakshmi Vilas Bank 7.50%
Indusind Bank 7.25%
Yes Bank 7.25%
For a period of 2 years
IDFC First Bank 8%
RBL Bank 7.65%
DCB Bank 7.50%
Lakshmi Vilas Bank 7.50%
AU Small Finance Bank 7.50%
For a period of 5 years
DCB Bank 7.75%
IDFC First Bank 7.50%
RBL Bank 7.50%
Au Small Finance Bank 7.50%
(Note) Interest rates add up annually ...

You can also get the benefit of income tax exemption by investing in bank FDs of more than five years. Under Section 80C of the Income Tax Act, you can avail deduction by investing up to Rs 1.50 lakh in tax saving FD. By the way, the interest you get at maturity will not be tax free.

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