Fixed Deposit is a contractual right provided by Indian banks which provides investors with a higher rate of interest than a regular savings account.

1. FIXED DEPOSIT

2. WHAT ARE FIXED DEPOSITS?
• Fixed Deposit is a contractual right provided by Indian banks which
provides investors with a higher rate of interest than a regular savings
account
• Fixed Deposit may or may not require the creation of a separate account

3. ARE FIXED DEPOSITS SAFE?
• In India Fixed Deposits are considered to be very safe investments and
they are used to denote a larger class of investments with varying levels of
liquidity
• Fixed deposits are a high-interest-yielding Term deposit offered by banks
in India. Fixed Deposits are recommended by maximum no. of wealth
managers.

4. WHY FIXED DEPOSITS OVER OTHER OPTIONS
• To compensate for the low liquidity, Fixed Deposits offer higher rates of
interest than saving accounts. Generally, the longer the term of deposit,
higher is the rate of interest
• Owing to the current dynamics in economic conditions and financial crisis,
Fixed Deposits are the most preferred option over Stock Investments, Gold
Investments and other forms of investment

5. BENEFITS OF FIXED DEPOSIT
• Customers can avail loans against Fixed Deposits up to 80 to 90 per cent of
the value of deposits. The rate of interest on the loan could be 1 to 2 per
cent over the rate offered on the deposit.
• Non Resident Indians and a Person of Indian Origin can also open these
accounts

6. TAXABILITY OF FIXED DEPOSITS
• Fixed Deposits also offer income tax and wealth tax benefits.
• Tax is deducted by the banks on FDs if interest paid to a customer at any
branch exceeds Rs 10,000 in a financial year. This is applicable to both
interest payable or reinvested per customer or per branch.
• Banks issue Form 16 A every quarter to the customer, as a receipt for Tax
Deducted at Source.

7. THANK YOU