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Fixed deposit
A fixed deposit (FD) is a type of saving scheme provided by banks which provides investors a higher rate of interest than a regular savings account.
The interest rate varies between 4 and 7.50 percent.The tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and can be as high as 10 years.
You can open a term deposit account with a bank where you already have a savings account. There are banks that let you open an FD account even if you don’t have a savings account with that bank. However, with such banks, you have to go through a KYC process where you have to present relevant documents, including ID proof, address proof, passport size photographs etc.
Amount deposited in FD account is locked till FD duration,premature withdrawal is allowed but banks charge approx 1% if inverster opt for it.
Some banks may offer additional services to FD holders such as loans against FD etc, ask your bank for services before opening the FD. Interest rates in FD varies depending on the tenure of FD and age of the invester, Senior citizens are generally get higher interest rates, usually 0.50% more than the existing rate.
An invester can choose how the amount will be paid, like quartely(interest is paid every quarter) or cumulative where interest in paid along with the deposit amunt on maturity of FD. Invester can choose any option before opeing the FD.
Any person who is citizen of India can invest in FD.Other than this, even NRIs (Non-resident Indians) can open FD accounts in India in the form of NRE (Non-resident External) and NRO (Non-resident Ordinary) FDs.

Benefits of FD
Investing in a fixed deposit earns you a higher interest rate than depositing your money in a saving account.
Customers can avail loans against FDs up to 80 to 90 percent of the value of deposits. The rate of interest on the loan could be 1 to 2 percent over the rate offered on the deposit. Residents of India can open these accounts for a minimum of 7 days.

Tax is deducted by the banks on FDs if interest paid to a customer at any bank exceeds Rs. 10,000 in a financial year.
If any tax on Fixed Deposit interest is due after TDS, the holder is expected to declare it in Income Tax returns and pay it by himself. If the total income for a year does not fall within the overall taxable limits, customers can submit a Form 15 G (below 60 years of age) or Form 15 H (above 60 years of age) to the bank when starting the FD and at the start of every financial year to avoid TDS.

Types of Fixed Deposits
Normal Fixed Deposits-Deposit money for a fixed tenure.Tenure can range from 7 days to 10 years.Interest rates higher than a normal savings account.
Tax-Saving Fixed Deposits-In Tax saving FD an invester can avail Tax benifit under 80C on the principal deposit amount of up to Rs.1.5 lakh in a calendar year. Lock-in period of 5 years within which you cannot withdraw the amount.

Click on the links to read: Public Provident Fund    Income Tax Return   List Of Indian Product