Fixed Deposit Minimum Amount for 2025

Opening fixed deposits is easier and more convenient with online facilities. They help earn stable interest on a lump sum of money over a specific tenure. Moreover, it takes a small sum of money to start investing in an FD to build a large corpus over time. 

While certain banks allow booking fixed deposits with as low as ₹5,000 others allow a minimum of ₹10,000. Explore the fixed deposit minimum amounts and interest rates offered by our partnered banks and NBFCs and find the best option for your financial needs.

Minimum Deposit Amount and Interest Rates

Here is the interest income (interest payable at maturity) on a fixed deposit minimum amount of ₹5,000 for 1 year and 3 years tenure with our partnered banks and NBFCs:

Eligibility for Fixed Deposit Investment

Here is the list of eligible persons or entities eligible to open fixed deposits:

• Resident Indian Individuals
• Hindu Undivided Families (HUF)
• Sole Proprietorship firms
• Limited Companies
• Partnership firms
• Trust Accounts
• Minor under Guardianship
• Non-resident Indians

Documents Required to Open a Fixed Deposit of Minimum Amount

Here are the documents that you need to open a fixed deposit:

• PAN card as an identity proof
• Passport, Aadhaar card, driving license and voter ID card as address proof
• Passport size photographs

Key Features of Fixed Deposit of Minimum Amount

The following are the key features of fixed deposits:

• Lucrative Interest Rates: Fixed deposits offer higher interest rates compared to savings accounts.
• Senior Citizen Perks: Senior citizens can avail a higher interest rate on their fixed deposit amount compared to non-senior citizens.
• Interest Payout Frequency: As a depositor, you can choose the interest payout frequency as monthly, quarterly, annual or cumulative while booking an FD.
• Flexible Tenure Options: You can choose a tenure based on your financial goals. Notably, the interest rates for different tenures vary.
• Instant FD Booking: You can easily book a fixed deposit online at your convenience without physically visiting banks or NBFCs. 
• Premature Withdrawal Option: In case of financial emergencies, you can withdraw your fixed deposit before maturity, ensuring easy liquidity. Banks levy a penalty on the effective interest rate for premature fixed deposit withdrawals. 
• Auto-Renewal Facility: While booking a fixed deposit, you can choose the auto-renewal option. This helps you earn higher returns than a savings account. When the fixed deposit matures, it is renewed again automatically, resulting in higher returns over a long time.
• Nomination Facility: You can choose different nominees for different fixed deposits based on your choice.
• Loan Against Fixed Deposits: Banks often provide loans against fixed deposits, helping you avoid premature withdrawal and penalty imposition on the effective interest rate.

Visit our website now to book a fixed deposit of any amount at your convenience!

TDS on Interest Income from Fixed Deposit Minimum Amount

The interest income earned from fixed deposits is taxable as per the  Income Tax Act, 1961. It is considered 'income from other sources' wherein the tax rate is based on the depositor's income slab. 

In addition, banks deduct TDS (tax deducted at source) if the total interest earned by a non-senior citizen depositor during a financial year exceeds ₹40,000. The same rule applies to senior citizens wherein banks deduct TDS if the annual interest income exceeds ₹50,000.

If the depositor has non-taxable income, he/ she can submit form 15G (non-senior citizen) or form 15H (senior citizen) to the bank at the beginning of the financial year to avoid TDS deduction. 

Penalty on Premature Withdrawal of Fixed Deposit Minimum Amount

Banks allow premature liquidation of fixed deposits irrespective of the principal amount. As a depositor, you may be able to withdraw a minimum fixed deposit amount before a certain date without any penalty. However, banks usually levy a penalty on the effective interest rate for a tenure upon full withdrawals. 

Consider the following example to understand penalty imposition on premature withdrawal of a fixed deposit of a minimum amount:

Fixed Deposit Investment Tips

You can follow the tips mentioned below while opening a fixed deposit:

• Determine the fixed deposit amount, which can be the minimum amount or a higher amount. 
• Decide your fixed deposit tenure based on your financial goals. Choosing multiple fixed deposits of different tenures can help you earn a relatively higher interest rate while helping you avoid early withdrawals and penalties. 
• Ensure to book new fixed deposits when the interest rates are high to lock in the higher rates.
• Try to avoid premature withdrawal of fixed deposits to eliminate penalty imposition and loss of interest income. 

Download the Stable Money App to book a fixed deposit of your desired amount now! Find the best option by comparing offers from many