How many types of fixed deposits are there in India?

There are two types of fixed deposit accounts for Non-resident Indians available Indian Banks, viz. Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts. NRE FDs are best suited for those who earn in foreign currency and who wishes to get the amount converted to Indian currency value.

How does fixed deposits work in India?

In a Fixed Deposit, the sum of money is blocked for the period of the deposit. Banks allow depositors the flexibility to invest their funds from periods as low as 7 days to 10 years. Since the interest rate and the period of this deposit are fixed, banks refer to this type of deposit as a Fixed Deposit.

What are the types of fixed deposit account?

Types of Fixed Deposits

• Normal Fixed Deposits. Deposit money for a fixed tenure.
• Tax-Saving Fixed Deposits. Tax exemption on the principal deposit amount of up to Rs.
• Senior Citizen Fixed Deposits. Applicable for individuals above 60 years of age.
• Cumulative Fixed Deposits.
• Non-Cumulative Fixed Deposits.
• Flexi Fixed Deposits.

How many types of deposits are there?

Primarily, banks offer two kinds of deposit accounts. These are demand deposits like current/saving account and term deposits like fixed or recurring deposits. When you open a deposit account in a bank, you become an account holder or a depositor. Saving accounts are used to meet daily on-demand requirements of cash.

Which type of fixed deposit is best in India?

Best 2021 FD Interest Rates for Below Rs.2 Crore for 3-Year Tenure

How many deposits are there in India?

Traditionally, there are four types of bank deposits in India, which are – Current Account, Recurring Deposits, Savings Accounts, and Fixed Deposit Accounts. Each type has its advantages.