Optimize your FD and maximize interest rate on fixed deposit

What is a fixed deposit? Is this a good investment option for you?
What is the procedure to open a fixed deposit? What are its pros and cons?
These questions and more are addressed in the article. 

An FD is a popular means of depositing your money. It is simple, safe, and secure. You can make a lump sum deposit of any amount for any tenure. Depending on the amount you deposit, you can save on income tax too. A higher mandate ensures better returns in case of an FD, as the fd interest rate is a function of deposit tenure.
Banks and post offices offer FD schemes. The interest rates vary.
One can compare the interest rates and choose a bank with the best interest rate. 
There are two ways to open an FD – online and offline.
If you have activated the internet banking facility for your bank account,
the online method can be followed. You can choose from the deposit
schemes provided by your bank through your online account.
Otherwise, you can want to do it offline. Visit the bank you wish to open an FD in.
You will have to submit a form along with various documents for ID proof,
address proof, and passport size photographs. Deposit the amount and collect the
FD receipt.
FD is recommended for senior citizens and people who are averse to financial risks.




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