Fixed Deposit is a kind of investment which is offered by Banks and Non Banking Financial companies, where you can deposit money for a higher rate of interest which is higher than the interest rate offered by banks and NBFCs in their savings account. Where a lump sum amount of money is deposited for a fixed period of time, which varies for every financier. Usually Fixed Deposit amount cannot be withdrawn before the date of maturity but someone wants to withdraw it in case of an emergency then he can do so in exchange for the penalty.
Features of Fixed Deposit
- Fixed deposits enables investors to earn a higher rate of interest on their surplus funds.
- You can deposit money for fixed deposit account only once, and if more amount is to be deposited by the investor then for that he needs to create another account.
- Though liquidity in case of Fixed deposit is lesser, therefore one can expect a higher rate of interest.
- Fixed deposits can easily be renewed.
- Tax is deducted as per Income Tax Act, 1961 from the interest of the fixed deposit.
Benefits of Fixed deposit
There are several advantages of fixed deposits and they are as follows-
- This form of investment is the safest form of investment instrument.
- Return on fixed deposit is fixed and there is no risk involved.
- There is no effect of market fluctuations on your fixed deposit, which ensures greater safety of your investment capital.
- Higher rate of interest is availed on fixed deposit.
- Some financers also offer greater returns on fixed deposit to senior citizens.
Documents for starting Fixed Deposit
- Latest photograph
- Certified KYC documents
Public or private limited Company-
- PAN
- Certificate of Incorporation
- Memorandum and Articles of association
- Partnership deed
- Board resolution for opening the FD account
- ID proof of authorized signatory
Partnership Firm-
- PAN
- KYC documents of the firm
- Certificate of Registration
- Partnership deed
- List of authorized signatories with specimen signatures
- ID proofs of authorized signatories
Hindu Undivided Family
- Certified KYC documents
- Self-attested PAN card bearing the name of the HUF
- Deed of declaration of HUF
- Bank account statement/DEMAT statement in the name of the HUF
- KYC documents for all adult members of HUF
Statutory Board/Local Authority
- PAN
- KYC documents
- List of authorized signatories with specimen signatures
- Self-certification on letterhead
Registered Societies
- PAN
- KYC documents
- Copy of Registration certificate under the Societies Registration act
- List of members of the managing committee
- Committee resolutions for persons authorised to act as authorised signatory, with other specimen signatures
- True copies of society’s rules and by-laws, certified by the chairman or secretary.
Why invest in BIAT consultant Fixed deposits
BIAT consultants offers you a greater returns with a higher rate of interest on your Fixed deposits. You can start investing with Rs. 25000/-.
FAQs
- What is Provident Fund (PF)?
PF is an investment fund contributed to by employees, employers and (sometimes) the State, out of which a lump sum is provided to each employee on retirement.
- How to get Maximum returns from fixed Deposits?
In order to get maximum returns following steps is required to be taken and they are as follows-
- Plan your investment strategy
- File your returns on time
- Ladder you FDs for liquidity and tax benefits
- Chose cumulative FDs over non-cumulative one.
- What is the interest rate on fixed Deposit?
The interest rate is the percentage of money you can earn from your fixed deposit over the course of your tenure.
- What is TDS on fixed deposit?
Tax which is deducted from the interest of your fixed deposit which ranges from 0 to 30% depending upon your income tax bracket.