Fixed Deposit Minimum Periods across Various Savings Schemes

Fixed deposit accounts are the go-to option for individuals who prefer generating a fixed source of income that is totally unaffected by market fluctuations. If you want to book an FD, it is crucial to learn about the various options and the lock-in periods to determine whether a scheme aligns with your investment horizon. 

At Stable Money, we offer different types of fixed deposits from various banks and NBFCs. You can download the Stable Money app to compare your options by checking fixed deposit minimum periods, interest rates, tenures and other features. Book an FD with Stable Money now.

Different Types of Fixed Deposit Investments and Their Minimum Terms

Here, you can see the various FD schemes you can participate in through the Stable Money mobile application and their minimum tenures:

3. Regular/ Standard Fixed Deposit

It is the most common type of fixed deposit account offered by different Indian banks and NBFCs. You can put your money in these accounts for a predetermined period and earn fixed returns monthly/ bi-annually/ annually. All Indian citizens, including minors, can apply for a standard fixed deposit account. 

• Standard Fixed Deposit Minimum Period: 7 days 
• Interest Offered: 3% - 7.50% p.a.
• Taxation: The FD interest is taxed as ‘income from other sources’. Interest is added to your taxable income and taxed as per applicable income tax slabs. When your annual interest earning exceeds ₹40,000, your account becomes subject to a 10% TDS. For senior citizens, this tax-free interest limit has been set to ₹50,000 in a financial year.

2. Tax-Saving Fixed Deposit

The tax-saver fixed deposit scheme is a special FD category that allows tax exemptions as per Section 80C of the Income Tax Act of 1961. 

If you opt for investing in a tax-saving fixed deposit, you can reduce your annual taxable income by ₹1.5 Lakhs for a single FY. These schemes are almost similar to standard fixed deposit accounts, with the only difference being that no minor person is eligible to open a tax-saving FD. 

• Tax-Saver Fixed Deposit Minimum Period: 5 Years 
• Interest Offered: 5.5%-7.75% p.a.
• Taxation: Tax is deductible for contributions up to ₹1.5 Lakhs in a single fiscal year as per Section 80C of the IT Act.

3. Cumulative Fixed Deposit

When you invest in a cumulative FD, the interest on the initial principal amount keeps on accumulating. Finally, you get the whole amount upon maturity. 

Cumulative FDs work on the compounding concept. Thus, the longer you stay invested, the more exponentially your money grows. Therefore, you can explore this fixed deposit option if you are not looking for an immediate passive income. 

• Cumulative Fixed Deposit Minimum Period: 6 months
• Interest Offered: 5.30%-7.80% p.a.
• Taxation: Also, taxed as ‘income from other sources’. 10% TDS applies to your earnings when you secure more than ₹40,000 interest in a financial year. For senior citizens, TDS is deducted when they earn more than ₹50,000 interest through FDs in a single year.

4. Non-Cumulative Fixed Deposit

These accounts also generate returns based on the compounding effect, unlike the cumulative FD schemes, which provide regular payouts. While they offer lower returns compared to cumulative FDs for the same tenure, they offer better liquidity to depositors. 

• Non-Cumulative Fixed Deposit Minimum Period: 6 months
• Interest Offered: Lower than cumulative FDs for the same tenure
• Taxation: 10% TDS applies to interest earnings of regular account holders as well senior citizens when their per year interest yield exceeds ₹40,000 and ₹50,000, respectively. 

5. Corporate Fixed Deposit

Corporate fixed deposit schemes are a noteworthy addition for people who wish to diversify their investment portfolios. However, only a few NBFCs and corporate brands provide a corporate fixed deposit account. They come only with cumulative interest-paying options where you get assured returns at the end of maturity. 

• Non-Cumulative Fixed Deposit Minimum Period: 12 months
• Interest Offered: 6.75%-8.18% p.a.
• Taxation: TDS is charged from corporate fixed deposit schemes when the interest earned for a year is more than ₹5,000. 

6. Senior Citizen Fixed Deposit

Senior citizen fixed deposit accounts give an extra 0.50% interest over traditional FD interest rates. These schemes are reserved for individuals above 60 years of age and allow tax exemptions according to Section 80C of the Income Tax law. One can expect to get interest returns from these accounts monthly/ quarterly/ half-yearly/ yearly. 

• Non-Cumulative Fixed Deposit Minimum Period: 7 days
• Interest Offered: 2.50%-9.50% p.a.
• Taxation: The concerned authorities apply tax under Section 80TTB of the Income Tax Act, 1961 when the interest amount exceeds ₹50,000 in a financial year.

For different fixed deposit options that provide interest rates of up to 9.50% per annum, consider downloading the Stable Money app. We show you the industry-best FD offers from top-rated providers. You can simply open your account and manage your investments through one app without facing any hassle of visiting the provider's nearest branch.