4 Types of Deposit Accounts in India 4 Types of Deposit Accounts in India | Page 2

Fixed Deposit (FD)
– An FD enables you to earn higher rate of interest on your
funds
– However, your FD money will have a lock-in
– During this time, you cannot withdraw your money
– The time period ranges between 7 days and 10 years
– You can open an FD with both banks and NBFCs
– The rate of interest varies with the tenure, financial
institution
– Currently, the rates range between 6.5-8.5%
– You can deposit in an FD only once
– For additional deposits, you have to open separate accounts
– FDs can help you save for future goals like property down
payment
– During emergencies, you need not break the FD
– You can simply take a loan against the FD
Recurring Deposit (RD)
– An RD is a more flexible form of an FD
– Unlike the FD, you can deposit money at regular intervals
– This can be either each month or quarter
– The money is then locked-in for a specific period
– At the end of the period, the total amount is repaid with
interest
– An RD tenure ranges between 6 months and 10 years
– RD helps people save a certain amount every month
– You can open an RD to finance future goals like education,
wedding
To know more about Fixed Deposits from Bajaj Finance, click here
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