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How Can Fixed Deposits Help You Save and Enjoy At The Same Time?


Investments are one of the crucial aspects of our life. There are plenty of investment schemes that can be confusing for beginners who also have to consider the potential risks of investment. From bonds and stocks to mutual funds and fixed deposits, it is important to play safe. Hence, you must consider one of the most common, safest, and low-risk investment options like Fixed Deposits (FDs).

Fixed Deposits are crucial investment schemes that can help you grow your savings at a fixed interest rate. The maximum interest rate on FD is higher than other low-risk investment options. Fixed deposits are safe and secure and can also help you to achieve your financial goals.

What is a Fixed Deposit?

Fixed Deposits are one of the most common investment schemes. Banks and non-banking financial companies (NBFCs) provide fixed deposit schemes where you can invest your idle money for a while and get it back at a higher interest rate. The return on investment formula of FDs depends on the fixed FD rates. The interest rate can vary depending on the banks and organizations and the maturity period. The ROI formula is as follows:


Where A is the amount after maturity, P stands for the principal amount, r is the rate of interest, t is the total time in years, and n is the tenure. This formula will work as a fixed deposit calculator for you.

Advantages of FDs

Fixed deposits come with a lot of benefits that will help you to meet your financial needs. Let us discuss those:

  • Assured returns: If you invest in fixed deposits, you will get a guaranteed return. People usually invest in fixed deposits for this assurance. Customers can check the interest rate from the bank’s website. You can also check your return on investment from their online fixed deposit calculators
  • Saves tax: Banks and other commercial organizations often provide tax-saving schemes in FDs for their customers. Hence, it can reduce both taxable income and tax amount. According to the Income Tax Act (u/s 80c) of 1961, you can invest up to ₹1.5 lakh in any fixed deposit scheme. This amount can be highlighted in the deductions of income tax.
  • Higher interest rate: The interest rate that FDs attract are higher than the saving accounts. Banks and other NBFCs usually provide higher interest rates for senior citizens. Hence, fixed deposit schemes are great investment options after retirement. Let us take an example. If you are investing ₹1,00,000 in a savings account at 4% interest, you will get ₹1,22,019 after five years. On the other hand, you will get ₹1,48,600 after investing in a fixed deposit scheme at Shriram Finance. Thus, an appropriate fixed deposit scheme with a maximum interest rate can double your interest amount.
  • Flexibility of tenure: Fixed Deposit account holders can decide the period of their deposits. Customers can also choose to renew the deposit period after maturity. The tenure of FDs can vary from 7 days to 10 years.
  • Hassle-free liquidation: You can easily liquidate your online FD via internet banking. You can visit your branch and fill the liquidation form to complete this process.
  • Availing loans: Banks and financial companies offer loans against FDs. Hence, you can get a loan of up to 95% of the deposit amount during financial emergencies. Here, you have to pay a small interest percentage, usually 0.5% to 2% over your deposit rate.

How to apply for a Fixed Deposit?

You can open a FD account either online or offline. There are multiple steps that you need to follow.


  • Visit the official website of your desired bank or NBFC.
  • Search for the highest fixed deposit rates and select your desired scheme.
  • Fill up the application form and submit it.
  • Verify your documents and continue with the fund transfer.
  • The bank will complete the process, and your online Fixed Deposit account will be created.
  • The system will automatically generate your deposit certificate.


  • Visit the bank branch or the financial company’s office and collect the FD opening form.
  • Fill up the form and submit all the required documents.
  • Proceed with the deposit. You can give a cheque or cash. If you have a bank account with sufficient funds, you can also give them a canceled cheque leaf.
  • The bank will notify you and give you a deposit certificate.

Documents required to apply for a fixed deposit scheme:

You need the following documents to apply for a fixed deposit:

  • Identity Proof: Aadhar card, voters card, driving license, passport, or PAN card
  • Address Proof: Voters card and Aadhar card
  • Photographs: 3-4 copies of recent passport-sized photographs 
  • One canceled cheque to fetch your bank details and continue the deposit process.

How can Shriram Finance help you to open a fixed deposit with the highest interest rate?

Shriram Finance offers both offline and online fixed deposit schemes with the highest fixed deposit rate in India. Open your fixed deposit account with a lucrative interest rate of up to 9.20%* p.a. which is inclusive of the additional interest benefit of 0.50%* p.a. for senior citizens and 0.10%* p.a. for women depositors. You will also get monthly accumulation that will help you to manage your savings and accomplish your financial goals. The flexibility of the tenure from 12 to 60 months can help you to plan accordingly. You can for both non-cumulative & cumulative Fixed Deposit schemes. In the case of emergencies, you can also withdraw your money prematurely.

Click here to check out the schemes. Also go through the Fixed Deposit Calculator to calculate the maturity amount of your desired investment.


Fixed deposits are one of the most popular investment schemes in India. They provide multiple benefits, safety and assurance. Securely grow your saving by opening a fixed deposit account. Do you want Shriram Finance to help you with your financial struggles? Then apply for a fixed deposit scheme to save your money and continue living a secured life. Go through our attractive FD schemes and choose to use your idle funds to increase your savings.

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