A fixed deposit (FD) investment is a financial instrument offered by banks and financial institutions where you deposit a certain amount of money for a fixed period at a predetermined interest rate. The deposited amount and the interest earned are returned to you at the end of the maturity period.
Eligibility Criteria for opening a Fixed Deposit
The eligibility criteria for opening a fixed deposit account at
Airtel Finance is very easy. You just need to be an Indian citizen or a Non-Resident Indian (NRI) and have your PAN card and KYC documents (Aadhaar, passport, driving license or voter ID) with you. Women, senior citizens, individuals, and more – everyone can open a fixed deposit account at Airtel.
Features of Fixed Deposit
Here are some of the best features of opening a Fixed Deposit with Airtel Finance:
- Earn high interest rates, up to 8.15%
- Your investments will be insured, up to ₹5 lakhs by the DICGC (RBI subsidiary)
- Instant withdrawal of FD amount
- The entire application process is 100% digital
- Pre-mature withdrawal of your FD amount within 7 days
- The minimum FD amount is kept low
- Lower lock-in period
Types of Fixed Deposits
Here are some of the popular types of fixed deposits:
- Regular Fixed Deposits: These are the standard fixed deposits offered by banks and financial institutions where you deposit a lump sum for a fixed period at a predetermined interest rate.
- Senior Citizen Fixed Deposits: Some banks offer special fixed deposit schemes for senior citizens, providing them with higher interest rates than regular fixed deposits. The age criteria for qualifying as a senior citizen may vary between banks.
- Tax-Saver Fixed Deposits: These fixed deposits come with a lock-in period of five years and offer tax benefits under Section 80C of the Income Tax Act in India. The investment in tax-saver fixed deposits is eligible for deduction up to a certain limit.
- Flexi Fixed Deposits: Flexi or flexible fixed deposits allow you to withdraw a part of your deposit before maturity without incurring penalties. However, the interest rate offered on flexi fixed deposits may be lower than that of regular fixed deposits.
- Cumulative and Non-Cumulative Fixed Deposits: In cumulative fixed deposits, the interest earned is reinvested along with the principal amount and paid out at maturity. In non-cumulative fixed deposits, you can choose to receive the interest payouts at regular intervals (monthly, quarterly, half-yearly, or annually).
- Floating Rate Fixed Deposits: Unlike traditional fixed deposits, the interest rate on floating rate fixed deposits can vary during the deposit tenure based on market conditions. This type of fixed deposit offers the potential for higher returns if interest rates rise but carries the risk of lower returns if interest rates fall.
- Corporate Fixed Deposits: These fixed deposits are offered by corporate entities and typically offer higher interest rates compared to bank fixed deposits. However, they may carry higher risks due to the creditworthiness of the issuing company.
Fixed Deposit (FD) Interest Rates
FD rates for customers below the age of 60
The highest FD rate for customers below the age of 60 is: 8.15%
FD rates for customers above the age of 60
The highest FD rate for customers above the age of 60 is: 8.15%
Impact of Tax on Fixed Deposit
Income tax on fixed deposits is levied based on the interest earned, which is added to the investor’s total income and taxed according to their applicable income tax slab rate. Banks must deduct Tax Deducted at Source (TDS) on interest income exceeding ₹40,000 in a financial year, or ₹50,000 for senior citizens. Tax-saver fixed deposits offer deductions under Section 80C of the Income Tax Act, but the interest earned remains taxable upon maturity.
Why choose Airtel Fixed Deposit?
Choose Airtel Fixed Deposit to get the maximum features, the highest return on your investment (up to 8.15%) and a lot more. Airtel Finance has partnered up with some of the most renowned banks and financial institutions to provide you with a simpler and seamless experience when it comes to investing in a fixed deposit.
