{"id":12211,"date":"2022-06-07T16:27:46","date_gmt":"2022-06-07T10:57:46","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=12211"},"modified":"2022-07-14T16:46:36","modified_gmt":"2022-07-14T11:16:36","slug":"why-do-indians-prefer-investing-in-fixed-deposits","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/","title":{"rendered":"Why Do Indians Prefer Investing in Fixed Deposits?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69dc3427b0fc2\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69dc3427b0fc2\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Features_and_Benefits_of_Fixed_Deposit_Schemes\" title=\"Features and Benefits of Fixed Deposit Schemes\">Features and Benefits of Fixed Deposit Schemes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Different_Types_of_FD_in_India\" title=\"Different Types of FD in India\">Different Types of FD in India<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Normal_FDs\" title=\"Normal FDs:\">Normal FDs:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Tax-saving_FDs\" title=\"Tax-saving FDs:\">Tax-saving FDs:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#FDs_for_senior_citizens\" title=\"FDs for senior citizens:\">FDs for senior citizens:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Flexi_FDs\" title=\"Flexi FDs:\">Flexi FDs:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Factors_Influencing_the_Fixed_Deposit_Interest_Rate\" title=\"Factors Influencing the Fixed Deposit Interest Rate\">Factors Influencing the Fixed Deposit Interest Rate<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Deposit_tenure\" title=\"Deposit tenure:\">Deposit tenure:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Credit_rating\" title=\"Credit rating:\">Credit rating:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Interest_rate\" title=\"Interest rate:\">Interest rate:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Loan_against_FD\" title=\"Loan against FD:\">Loan against FD:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Efficacy_of_financial_institutions\" title=\"Efficacy of financial institutions:\">Efficacy of financial institutions:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#FD_Interest_Rates_of_Popular_Banks_as_of_May_06_2022\" title=\"FD Interest Rates of Popular Banks as of May 06, 2022\">FD Interest Rates of Popular Banks as of May 06, 2022<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Final_Word\" title=\"Final Word\">Final Word<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#How_much_return_can_someone_expect_from_a_fixed_deposit_of_Rs_1_crore\" title=\"How much return can someone expect from a fixed deposit of Rs. 1 crore?\">How much return can someone expect from a fixed deposit of Rs. 1 crore?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#What_is_the_best_bank_to_invest_Rs_50_lakh_in_FD\" title=\"What is the best bank to invest Rs. 50 lakh in FD?\">What is the best bank to invest Rs. 50 lakh in FD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Why_do_banks_sometimes_ask_for_indemnity_bonds_for_claiming_FD_returns\" title=\"Why do banks sometimes ask for indemnity bonds for claiming FD returns?\">Why do banks sometimes ask for indemnity bonds for claiming FD returns?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/#Interested_in_how_we_think_about_the_markets\" title=\"Interested in how we think about the markets?\">Interested in how we think about the markets?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Over 95% of Indian households prefer <\/span>fixed deposits<span style=\"font-weight: 400;\"> to other forms of investment like <a href=\"https:\/\/app.kuvera.in\/explore\/mf\/c\/all\/equity\">equities<\/a>, etc. This is because their marginal propensity to invest is proportional to returns guarantee and risk-free nature.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">\u00a0To know about the benefits of investing in fixed deposits, read on!<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/kuvera.in\/explore\/fixed-deposit\/c\/all\"><img loading=\"lazy\" class=\"size-large wp-image-13417 aligncenter\" src=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-1024x334.jpg\" sizes=\"(max-width: 640px) 100vw, 640px\" srcset=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-1024x334.jpg 1024w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-300x98.jpg 300w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-768x250.jpg 768w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022.jpg 1080w\" alt=\"Online Fixed Deposits on Kuvera\" width=\"640\" height=\"209\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Features_and_Benefits_of_Fixed_Deposit_Schemes\"><\/span>Features and Benefits of Fixed Deposit Schemes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Fixed deposits allow Indian investors to keep their money with banks for a fixed tenure. The investment period can range from 7 days to 10 years. The <\/span>fixed deposit interest rate<span style=\"font-weight: 400;\"> is generally higher than savings bank accounts.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Fixed deposit schemes can be a standard, tax-savings type or those suitable for senior citizens, etc. Any Indian citizen, NRI, minor, institution, senior citizen, or partnership firm can open fixed deposit accounts.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Some key benefits of investing in fixed deposits are as follows:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Fixed deposits are steady and regular sources of income. Banks typically credit the interest amount to the account holder annually.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Market volatility cannot affect the return generation from FDs. Thus, they are a low-risk investment option that offers decent returns.\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Fixed deposit account holders can take loans on up to 90% of their principal amount at an interest rate specified by the financial institution.\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Section 80C of the Income Tax Act states that individuals can claim tax deductions of up to Rs. 1.5 lakh against investments made in tax-saving fixed deposits.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Senior citizens can enjoy an additional <\/span>fixed deposit interest rate of<span style=\"font-weight: 400;\"> 0.5% on fixed deposit accounts.\u00a0\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Different_Types_of_FD_in_India\"><\/span>Different Types of FD in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The various types of fixed deposit accounts are as follows:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Normal_FDs\"><\/span>Normal FDs:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Typically, fixed deposit accounts offer higher interest rates than a regular savings account, and the tenure is up to 10 years.\u00a0\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Tax-saving_FDs\"><\/span>Tax-saving FDs:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">According to Section 80C of the Income Tax Act, tax-saving fixed deposit accounts can offer tax deductions of up to Rs. 1.5 lakh. Unlike other FDs, tax-saving FDs come with a lock-in period of 5 years. One cannot make a premature withdrawal before the lock-in period is over.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"FDs_for_senior_citizens\"><\/span>FDs for senior citizens:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Senior citizens can enjoy a flexible tenure and higher interest rates. The cumulative form of these FDs computes interest on a quarterly\/annual compounded basis, although they can withdraw the amount after maturity only. This is a decent way to grow one&#8217;s savings. Non-cumulative FDs allow account holders to withdraw the interest amount quarterly or annually. It helps meet monthly expenses, especially for retired individuals.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Flexi_FDs\"><\/span>Flexi FDs:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"> These fixed deposits enable account holders to link their savings bank accounts with FD accounts, thus allowing the flow of money between these two accounts.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Factors_Influencing_the_Fixed_Deposit_Interest_Rate\"><\/span>Factors Influencing the Fixed Deposit Interest Rate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Factors that influence the interest rate for fixed deposit accounts are as follows:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Deposit_tenure\"><\/span>Deposit tenure:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The interest rates obtained by FD account holders are directly proportional to the FD tenure. Thus a 7-year FD account will yield higher interest rates than a one-year FD scheme. Therefore, the choice of tenure (short\/medium\/long term) affects the interest rates that account holders receive.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Credit_rating\"><\/span>Credit rating:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><\/h3>\n<p><span style=\"font-weight: 400;\">The credit ratings provided by companies like CRISIL and CARE determine the effectiveness of FDs. A CRISIL FAA+ or CARE AA rating ensures risk minimization and profit maximization.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Interest_rate\"><\/span>Interest rate:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This factor defines the actual efficacy of fixed deposit accounts. Therefore, choosing the cumulative or non-cumulative FD type solely depends on one&#8217;s willingness to earn returns.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Loan_against_FD\"><\/span>Loan against FD:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Choosing an FD scheme involves provisions for availing loans on FDs. Investors can take loans of up to a certain percentage of the invested amount at an interest rate specified by banks.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Efficacy_of_financial_institutions\"><\/span>Efficacy of financial institutions:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It&#8217;s essential to<\/span> <span style=\"font-weight: 400;\">judge the effectiveness of the financial institution extending the FD scheme. The financial stability of these institutions determines their ability to provide the best inters rates and other value-added services.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"FD_Interest_Rates_of_Popular_Banks_as_of_May_06_2022\"><\/span>FD Interest Rates of Popular Banks as of May 06, 2022<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<table style=\"width: 100%;\" border=\"1.5\">\n<tbody>\n<tr>\n<td><b>Bank Name<\/b><\/td>\n<td style=\"text-align: center;\"><b>Interest Rate (General)<\/b><\/td>\n<td style=\"text-align: center;\"><b>Interest Rate (Senior Citizen)<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">ICICI Bank<\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">2.5 \u2013 5.75%<\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">3 \u2013 6.5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">State Bank of India<\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">2.9 \u2013 5.5%<\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">3.4 \u2013 6.3%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Canara Bank<\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">2.9 \u2013 5.5%<\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">3 \u2013 6.25%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">HDFC Bank<\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">2.5 \u2013 5.5%<\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">3 \u2013 6.25%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Axis Bank<\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">2.5 \u2013 5.75%<\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">2.5 \u2013 6.5%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Final_Word\"><\/span>Final Word<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Indians consider fixed deposit schemes one of the safest investment opportunities because they want to remain risk-neutral. Unlike other investment types, FD accounts are safe and reliable and yield low but guaranteed returns. Hence, senior citizens also prefer investing in schemes that offer the <\/span>best FD rates.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If you&#8217;re looking to invest your money in a Fixed Deposit, <\/span><a href=\"https:\/\/app.kuvera.in\/\"><span style=\"font-weight: 400;\">Kuvera<\/span><\/a><span style=\"font-weight: 400;\"> is the perfect platform for you. With Kuvera, you can compare different FD options from leading banks and NBFCs, and choose the one that best suits your needs. You can also select a convenient tenure and rate. The whole process takes just minutes and can be done with your primary bank account linked to Kuvera. So why wait? Invest today and watch your money grow!<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"How_much_return_can_someone_expect_from_a_fixed_deposit_of_Rs_1_crore\"><\/span>How much return can someone expect from a fixed deposit of Rs. 1 crore?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Banks may offer a <\/span>fixed deposit interest rate<span style=\"font-weight: 400;\"> of 6 \u2013 6.5% for five years. A yearly income of Rs. 6 lakh is thus guaranteed.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"What_is_the_best_bank_to_invest_Rs_50_lakh_in_FD\"><\/span>What is the best bank to invest Rs. 50 lakh in FD?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Investing in FD accounts is subject to many factors, including interest rates. Banks like IndusInd and Yes may provide one of the <\/span>highest FD interest rates<span style=\"font-weight: 400;\"> per annum, depending on the sum and tenure. That said, make sure to consider other factors like credit rating and the efficacy of the bank before opening a fixed deposit account.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Why_do_banks_sometimes_ask_for_indemnity_bonds_for_claiming_FD_returns\"><\/span>Why do banks sometimes ask for indemnity bonds for claiming FD returns?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Banks can ask nominees for an indemnity bond to claim returns earned on FD accounts. A legal heir certificate puts an end to this issue.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Interested_in_how_we_think_about_the_markets\"><\/span>Interested in how we think about the markets?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>Read more: <a href=\"https:\/\/kuvera.in\/blog\/category\/zen-and-the-art-of-investing\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Zen And The Art Of Investing<\/strong><\/a><\/p>\n<p>Check out all our &#8220;Investor Education Originals&#8221; videos on Youtube and get smart about investing.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><iframe loading=\"lazy\" title=\"SIP for the right start to your dreams | Best of Investor Education\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/8uwn1YpSsFU?list=PLDSzQdT9nLmBOsyCmLDKSz_PQcWdePZgI\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Start investing through a platform that brings goal planning and investing to your fingertips. Visit <a href=\"http:\/\/app.kuvera.in\"><strong>Kuvera.in<\/strong><\/a> to discover <a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\"><strong>Direct Plans<\/strong><\/a> and <strong><a href=\"https:\/\/app.kuvera.in\/explore\/fixed-deposit\/c\/all\">Fixed Deposits<\/a><\/strong> and <a href=\"https:\/\/kuvera.in\/user\/login\"><strong>start investing today.<\/strong><\/a><br \/>\n#MutualFundSahiHai #KuveraSabseSahiHai #PersonalFinance #InvestorEducation<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over 95% of Indian households prefer fixed deposits to other forms of investment like equities, etc. This is because their marginal propensity to invest is proportional to returns guarantee and risk-free nature.\u00a0 &nbsp; \u00a0To know about the benefits of investing in fixed deposits, read on! &nbsp; &nbsp; Features and Benefits of Fixed Deposit Schemes &nbsp; [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/why-do-indians-prefer-investing-in-fixed-deposits\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":11,"featured_media":12246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[543,593],"tags":[554,545,176,551,548],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Do Indians Prefer Investing in Fixed Deposits? 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