Skip to content

How Does Fixed Deposit for Women Work?


Ensuring financial security for the future is essential for every woman. One way to do this is by making safe investments, such as fixed deposits (FDs) offered by both banks and non-banking financial companies (NBFCs). These investments provide a higher rate of interest for women and are protected from market fluctuations, making them a relatively risk-free option.

Additionally, fixed deposits are liquid investments, meaning they can be easily accessed in case of financial emergencies. You can consider investing in Shriram Fixed Depositfor a hassle-free experience with guaranteed returns at a high rate of interest.

Fixed Deposits for Women: Quick Brief

Fixed deposits, also known as term deposits, are a type of financial instrument offered by banks, NBFCs, and other financial institutions. They allow you to deposit a certain sum of money for a fixed period, during which the funds are not accessible. In return, the institution pays you an agreed-upon rate of interest on the deposited amount.

Benefits of Fixed Deposits for Women

Higher rate of interest:

One of the main advantages of fixed deposits is that they offer a higher rate of interest compared to other risk-free investment options, such as savings accounts. This makes them an attractive option for women looking to grow their money over time.

Stable and secure:

Fixed deposits are considered to be a relatively stable and secure investment, as they are not subject to the same level of market fluctuations as other types of investments, like stocks or mutual funds.

Liquid investment:

Fixed deposits are considered a liquid investment. This means that you can easily access your funds by breaking the fixed deposit before it reaches maturity, although this may incur a penalty. This feature makes fixed deposits a useful option for managing unexpected financial emergencies.

Types of Fixed Deposits for Women

  1. Regular fixed deposits:These are traditional fixed deposits where you deposit a sum of money for a fixed period and earn a predetermined rate of interest.
  2. Flexi fixed deposits: These deposits allow you to choose a flexible tenure and interest payout frequency. This means you can adjust the term of the deposit and how often you receive the interest earned.
  3. Cumulative fixed deposits: In these deposits, the interest earned is compounded and paid along with the principal amount at the time of maturity. This is the same as the regular fixed deposit.
  4. Non-cumulative fixed deposits: In these deposits, the interest is paid at regular intervals (monthly, quarterly, half-yearly or annually) rather than being compounded.
  5. Tax-saving fixed deposits:These deposits offer tax benefits under Section 80C of the Income Tax Act. The maximum amount that can be invested in these deposits is ₹1.5 lakhs per year.
  6. Short-term fixed deposits:These deposits have a shorter tenure of up to 1 year and may offer higher interest rates than regular fixed deposits.

Advantages of Being a Female Senior Citizen

In India, female senior citizens are generally considered to be women above the age of 60 years. Senior citizens may be eligible for certain privileges and benefits, such as higher interest rates on fixed deposits and savings accounts, waived or reduced fees for certain banking services, and priority service at bank branches. Some banks may also offer specialised products and services, such as pension plans and medical insurance, specifically tailored to the needs of senior citizens. It is worth inquiring about these options if you are a female senior citizen. Shriram Finance offers women senior citizens the highest interest rate of up to 9.20%* p.a. on fixed deposits.

Also read: 3 Risk-free Tax-saving Investment Plans for Senior Citizens

Loan Availability Against FD

It is possible to obtain loan against a fixed deposit.This means you can use your fixed deposit as collateral to secure a loan from a bank or other financial institution.

The terms and conditions of a loan against a fixed deposit will vary depending on the lender and the specific details of the loan. Some common features of loans against fixed deposits include:

  1. Higher loan-to-value ratio: Loans against fixed deposits generally have a higher loan-to-value (LTV) ratio, which means that you can borrow a larger amount relative to the value of the fixed deposit.
  2. Lower interest rates: Loans against fixed deposits may have lower interest rates compared to other types of loans, such as personal loans or credit card loans.
  3. Shorter repayment tenure: The repayment tenure for loans against fixed deposits is generally shorter compared to other types of loans.
  4. Prepayment charges: Some lenders may charge a fee if you prepay the loan before the end of the tenure.
  5. Carefully consider the terms and conditions of loan against a fixed deposit before proceeding. You may want to compare offers from different lenders and seek the advice of a financial professional before making a decision.

Final Thoughts

Overall, fixed deposits can be a good option for women looking to grow their money securely over the long term, while still having the flexibility to access their funds in case of emergencies. It is important to carefully consider your financial goals and needs before choosing a fixed deposit and to compare rates from different institutions to find the best deal.

If you’re looking to invest in FDs, consider Shriram Fixed Deposit, which offers flexible tenures and higher interest rates, as well as an extra 0.25%* p.a. interest on matured FD renewals. By planning your financial goals carefully and taking advantage of these features, you can continue your financial journey without the need to prematurely withdraw your FD.


1. How do I open a fixed deposit account as a woman?

To open a fixed deposit account, you either visit the official website of a bank, NBFC, or other financial institution that offers fixed deposits online or pay a visit to their nearest branch.

2. How much money do I need to open a fixed deposit account?

The amount of money required to open a fixed deposit account can vary depending on the specific bank or financial institution you choose. Generally, the minimum deposit amount for a fixed deposit account can range from as low as a few thousand rupees to several lakhs or even crores, depending on the policies of financial institution.

3. What is the interest rate for fixed deposits for women?

The interest rate for fixed deposits for women can vary depending on the financial institution, Shriram Fixed Deposit offers interest rates as high as 9.20%* p.a. inclusive of special interest benefit of 0.50%* p.a. for senior citizens and 0.10%* p.a. for women depositors.

4. Can I withdraw money from a fixed deposit account before it matures?

It is generally possible to withdraw money from a fixed deposit account before it matures, although this may incur a penalty. It is preferable to check with the specific bank or NBFC for details.

Key Highlights

  • In a fixed deposit, individuals deposit a specific amount of money with a bank for a predetermined period. The bank then provides interest to the depositor based on the deposited amount.
  • The interest earned on fixed deposits for women is taxable as per the income tax laws of the country.
  • Some banks or NBFCs offer the option of premature withdrawal of the fixed deposit, but this may be subject to certain conditions and may attract a penalty.
  • You can use your fixed deposit as collateral to secure a loan from a bank or other financial institution.
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