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What are the different types of Fixed Deposits?

What are the different types of Fixed Deposits?

What are the different types of Fixed Deposits?

A Fixed Deposit (FD) offers multiple benefits making it one of the best investment tools. One of the best features of a fixed deposit is the flexible tenure that allows you to invest according to the timelines of your financial goals. A non-cumulative deposit is one FD type with which you can earn a regular interest pay-out. Senior citizens can also invest securely and get additional interest rates on their deposits.

When it comes to secure investment schemes, a fixed deposit is one of the best schemes you can choose. You get to put aside a lump sum of your money and watch it grow with the high-interest rates that an FD offers. A fixed deposit is excellent for investors who do not want to risk their investment, as the market fluctuations do not impact the invested amount.

With the trust of over 6.7 million customers, Shriram offers a fixed deposit with interest rates of up to 9.20%* p.a., including the 0.50%* p.a. interest rate for senior citizens and 0.10%* p.a. for women depositors.

A fixed deposit is one of the safest investment options through which you can earn relatively higher interest than a regular savings account. Your interest rate on a fixed deposit depends on your choice of bank or Non-Banking Financial Company (NBFC). Most banks and NBFCs offer additional interest for senior citizens, allowing them to earn more interest while saving money.

A fixed deposit has features that cater to the different needs of various financial goals. Let us read more to understand the types and benefits of a fixed deposit to help you make an informed decision for your investment:

Types of Fixed Deposits:

Standard Fixed Deposit:

A fixed deposit is an investment tool that lets you grow your finances over time with a predetermined interest rate. You must make a one-time investment at the start of the tenure in a fixed deposit. Typically, the term of an FD ranges between 7 days to 10 years. After the maturity of the deposit, you will receive the interest accumulated on the FD and the principal amount in your linked savings account.

Corporate Fixed Deposit:

A corporate FD is a deposit made with NBFCs or private companies. A corporate fixed deposit offers higher interest rates as compared to banks. You can always verify the company's credit rating to ensure your money is safe. Shriram, an NBFC, indicates a high degree of safety with a rating of "[ICRA]AA+ (Stable)" by ICRA. .

Cumulative Fixed Deposit:

Like regular fixed deposits, a cumulative account requires you to invest your money over a predetermined period. You are restricted from regular payouts in a cumulative fixed deposit and will receive the amount at maturity. This scheme is suited for individuals with long-term investment goals.

Non-Cumulative Fixed Deposit:

This scheme is most suited for investors with monthly goals to accomplish, like EMIs (Equated Monthly Investments) or bills. You can choose between a monthly, quarterly, half-yearly and yearly interest payout and still enjoy earning interest on the invested amount.

Tax-Saving Fixed Deposit:

As the name suggests, this deposit assists in tax savings and is accessible at practically all banks. You can get a tax exemption up to Rs. 1.5 lakh in a year. It has a lock-in period of 5 years, during which you cannot access or withdraw the funds.

Senior Citizen Fixed Deposit:

With a senior citizen FD, you can receive several advantages, but you must be over 60 years of age to qualify. The best benefit for senior citizens is a 0.50%* p.a. increase in interest rates over the standard interest rates, and they will benefit greatly from long-term FDs. Shriram, the NBFC offers an interest rate of up to 9.20%* p.a., including an additional 0.50%* p.a. interest rate for senior citizens and 0.10%* p.a. for women depositors.

Top 6 Factors to Consider Before Investing in an FD:

1. Interest Rates:

Putting your hard-earned savings into an FD can help you earn better interest than keeping them in a regular savings account. You can earn more interest with a corporate FD as they generally offer higher interest rates than most banks. Check Shriram interest rates and calculate your maturity amount in minutes using Shriram FD Calculator.

2. Assured Returns:

This is one of the biggest reasons an FD is one of the most popular investment schemes. Once you invest your money in a fixed deposit, you are assured of receiving guaranteed returns as the interest rate does not undergo market fluctuations and hence, does not impact the deposit amount.

3. Tax Benefits:

A tax-saver FD with a lock-in period of 5 years can help you with tax exemptions. Under Section 80C of the Income Tax Act 1961, you can claim up to Rs. 1.5 lakhs against your FD. The funds in a tax-saving FD cannot be withdrawn during the tenure of the deposit.

4. Loan against an FD:

In case of any emergency, you do not have to break your FD prematurely. Instead, you can leverage your fixed deposit, apply for a loan, and continue earning interest on the deposit amount. Most NBFCs allow you to take up to 90% of your FD as collateral for the loan.

5. Flexible Tenure:

The decision of the tenure for a fixed deposit account depends solely on the holder of the account. The minimum term of an FD depends on the bank or NBFC and can range from 7 days to 10 years.

6. One-Time Effort:

Once you have invested in a fixed deposit, you can rest easy knowing that your funds are secure. All you need is a lump sum amount of money to invest, and then you can watch your money grow for the tenure you need.


A fixed deposit is a great investment option because of the number of ways in which you can leverage it to grow your finances. Besides being one of the safest investment schemes, you can also get a steady interest pay-out with a non-cumulative fixed deposit.

Open a Shriram Fixed Deposit now to get one of the best interest rates in the market. You can use the Shriram FD calculator to determine the exact interest pay-out you can get on a deposit of your choice. An additional 0.25%* p.a. interest is also given on all renewals of all matured deposits.


1. How many types of fixed deposits are there?

Many types of fixed deposits can be customised according to your preference. You can earn a regular payout with a non-cumulative deposit or earn a little more interest by keeping it all in a cumulative deposit. Shriram offers cumulative and non-cumulative deposits with interest rates up to 9.20%* p.a., including 0.50%* p.a. for senior citizens and 0.10%* p.a. for women depositors.

2. What are the different types of deposits?

The different types of deposits under an FD include Regular, Corporate, Cumulative, Non-Cumulative, Tax-Saving, and Senior Citizen fixed deposits. These categories have features and advantages that will help you achieve your financial goals.

3. Which type of FD is best?

The best-fixed deposit can help develop a healthy savings habit and fulfil your financial goals. An FD has multiple features and benefits that make it an ideal investment option for a wide variety of investors.

Key Highlights:

  • A fixed deposit has multiple features you can customise to achieve your financial goals.
  • With a non-cumulative fixed deposit, you can earn a regular pay-out to manage monthly expenses.
  • Senior citizens enjoy the benefit of additional interest rates and can earn more than they would get from a regular savings account.
  • The flexible tenure of a fixed deposit makes it easy for individuals to invest while keeping in mind the timelines of their financial goals.
Shriram completes 50 years of service!

To mark this momentous occasion, we have launched Shriram Jubilee Deposit - a 50-month investment scheme.
Invest now and earn up to 9.20%* p.a. (including 0.50%* p.a. for Senior Citizens and 0.10%* p.a. for Women)

Book a Fixed Deposit & get attractive/ high returns