• What option should I select if I want to open a long term fixed deposit?

If you are booking a fixed deposit for a longer period (more than 181 days), and if you do not want interest to be credited to your Savings/ Current account on a monthly/ quarterly basis, please select the deposit type - Cumulative Quarterly, where you will get interest and principal on maturity. On this long-term FD, you will be earning interest on the interest amount, for which Interest compounding will take place on a quarterly basis. Let's understand the other FD options available, as well. 

1) If the Monthly Payout option is selected, then interest will be credited to the selected Savings/ Current account on a monthly basis (FD can be booked for minimum one year and a minimum amount of Rs. 1 lakh).

2) If the Quarterly Payout option is selected, the interest will be credited to the selected Savings/ Current on a quarterly basis (FD can be booked for minimum one year). 

3) If the Tax Savings Cumulative option is selected, then both the interest and principal will be credited on maturity, which is the same as the option with an additional benefit of tax saving. (FD can be booked for minimum 5 years).

4) If the Short Term option is selected (below 181 Days), interest and principal both will be credited on maturity. There is zero penalty on premature withdrawal. 

5) If you want a Tax Saving Payout option, a tax saving fixed deposit with a quarterly interest payout option is the right choice for you. To explore and check the latest interest rates on our Fixed Deposit, please click here.

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