7 Types of Fixed Deposits To Maximize Your Returns In 2023

Oct 20th 2023
Fixed Deposit
7 Types of Fixed Deposits To Maximize Your Returns In 2023

Types of Fixed Deposits, For ages, fixed deposits have been considered a time-tested investment tool to get guaranteed returns on investment. Despite the fact that their interest rate is plummeting every year, people are inclined towards them due to several reasons. The reason is reliability that their money is safe and they would get what they are promised by the bank or financial institution. However, there is one aspect that is often overlooked by investors is the lack of knowledge about fixed deposits that is meant to help them get better returns that what they expect. For example, not many people know that there are different types of fixed deposits to choose from. By understanding them, they can choose the most appropriate fixed deposit for your investment objective.

What Is Fixed Deposit?

A Fixed Deposit or FD is a kind of investment tool in which an investors puts a lump sum amount for a certain time period with an objective to get interest at a said rate. In general, people invest in fixed deposits as they offer better growth than savings account. So, instead of idling money in the bank account, it is better to invest the same in a Fixed Deposit.

Fixed Deposits are provided by banks, post offices, and other financial institutes. Investing money in a fixed deposit is very easy one can open a FD is no time.

Types Of Fixed Deposits

If you are looking to open a fixed deposit in Delhi, you must know different types of fixed deposits offered by financial organizations these days.

1. Cumulative Fixed Deposit:

What Is Cumulative Fixed deposit? A cumulative fixed deposit is a kind of conventional investment plan where the investors get the interest upon the maturity. It is note that that amount invested goes up by the interest over the previous month or interest tenure. An investor can enjoy the advantage of compounding interest and get amazing returns.

2. Tax Saver Fixed Deposit:

As its name indicates, this fixed deposit allows investors to get a tax rebate of up to 1.5 lacs in a financial year under section 10C. However, this fixed deposit comes with a lock-in period of 5 years.

3. Non-Cumulative Fixed Deposit:

Similar to a cumulative FD, this FD is a subdivision of a traditional fixed deposit. However, since interest is paid out on a monthly, quarterly, half-yearly, or annual basis, this FD is a good option for those who want to have a steady income. And, in this case, the maturity amount remains lower than what an investor would get from a cumulative FD.

4. Flexi Fixed Deposit:

This FD gets this name as it offers dual benefits to investors in the form of a conventional fixed deposit and a demand deposit. The amount invested by the person is linked to the savings accounts of the deposit issuer. However, it is to note that this FD offers better returns along with the easy liquidity of a savings account.

5. Bank FDs:

A bank FD is a particular type of fixed deposit in which an investors deposits a lump sum amount into a bank for a fixed period. Given the prevailing interest rate at the time of booking this FD, the interest will be accrued accordingly.

6. Post Office FD:

Considered among the safest investment choices available these days, a post office fixed deposit is often called a post office term deposit. This FD is issued by the Indian Postal Service and one can get it through post offices located all across the country. This FD also comes with the sovereign guarantee provided by the Indian government.

7. Company FDs:

One popular type of FD is a company FD, which is also known as a corporate FD. They are very simple. These FDs refer to fixed deposits that are offered by Non-banking Financial Corporations.

When an investor decides to invest in corporate FDs, it is recommended to consider CRISIL, ICRA, and other credit ratings of the issuer. They are meant to help investors understand the level of safety associated with the fixed deposit. These types of FDs come with varying tenures and more reasonable rates of return as compared to other FDs.

Calculate Your Fixed Deposit

What Are Benefits Of Fixed Deposits?

There are several advantages of fixed deposit account the most preferred investment option among investors of all types. Let’s take a look at them below.

Better Returns:

A fixed deposit's interest rate remains fixed when at the time when you invest. The returns are thus expected and one can calculate the same using various FD calculators.


In general, fixed deposits are available for different policy tenures, which enables investors to select the one matching their needs the best.


Keeping in mind that banks and other financial institutions that are government-insured sometimes issue fixed deposits, they are considered a low-risk investment choice. To verify the security and safety of your account, it is recommended to check the ratings of various fixed deposits.


Most fixed deposits allow easy withdraw of the amount at time of maturity, however this may levy some charges.

Here Are More Topics For Your Interest

7 Benefits of Investing in Mutual Funds In 2023

Make Your Idle Funds Work For You by Lending It To Others


1. How Can I Calculate The Interest Rate Of A Fixed Deposit?

The best way to calculate the interest rate on a FD is to use a FD interest rate calculator.

2. Can I Withdraw The Amount before The Maturity?

Yes, it is possible to withdraw the amount before the maturity date but you might not get a little lesser amount.

3. Do I Need To Submit An Age Proof While Booking A FD?

Yes, all types of FDs can be booked only after submitting the ID and age proof.

The Conclusion

Fixed deposits are a wonderful investment choice for those who want a steady amount at the time of maturity. And, it is good for people who have a lump sum amount to invest. If you are looking to invest in fixed deposits in Delhi, it is better to do a thorough research and explore different types of fixed deposits. Invest in the one which you find the best for your needs.


Reach out to our Experts if you have any Doubts

Like the best things in life, Consultations @InvestKraft are free

Drop a Mail or give us a Missed Call & Begin your Investment Journey here