A long-term Fixed Deposit (FD) has many advantages making it a popular form of investment. With a long-term FD, you can get reliable interest rates.

A fixed deposit is a popular investment plan. It is because it offers predictable returns and has various features that can make investing straightforward. FDs are generally provided by banks or Non-Banking Financial Companies (NBFCs).

It is a great investment scheme for individuals without experience in investing and who want to start their savings journey. However, there are several things you need to consider before you begin investing. Let's explore some factors you must consider while applying for a long-term fixed deposit.

Features of a Fixed Deposit

Stable Investments:

Generally, an FD can be booked for a minimum term of 12 months and can go on up to a maximum of 5 years. The choice of tenure is up to your preference at the time of opening the FD. The renewal of an FD upon maturity can also be done on maturity. Check the interest rates before reinvesting to ensure you get the best for your investment.

Rate of Interest:

The interest rate on an FD depends on the principal amount and the tenure you select for your deposit. Usually, the interest rates will be higher for long-term FDs and lower for short-term FDs. You can look at the Shriram FD interest rates to know how much you can get for your deposit.

What is a Long-Term Fixed Deposit

A long-term fixed deposit means an investment that may range between 3-5 years. In the past, a Fixed Deposit was considered a long-term investment. With the advancement of technology and new investment options, a short-term FD is just as popular as a long-term FD. The online process of opening an FD makes it more convenient for you to invest your money and earn more interest.

With a Shriram FD, you can get interest rates up to 8.15%* p.a., which includes the additional interest of 0.50%* p.a. exclusively for senior citizens and 0.05%* p.a. for Women Depositors.

Advantages of a Long-Term Fixed Deposit

• A long-term fixed deposit can help you meet your future financial goals.
• It is an excellent way to save your hard-earned money instead of leaving it in a savings account where it will earn a lower interest rate.
• The longer the deposit, the higher the interest rate you can get on the fund.
• It is an ideal option for senior citizens as the rate of interest paid is slightly higher for this age group.
• A loan can be availed on the FD.

Eligibility to Apply for a Long-Term Fixed Deposit

Here is a list of documents and eligibility criteria you will require to open a long-term fixed deposit account:

• You need to be an Indian Citizen living in India.
• You must submit identity proof like a passport, Aadhaar Card, PAN (Permanent Account Number) Card, Voter ID, or any other government-approved identification.
• Address proof documents will also be required. Telephone bill, electricity bill, bank statement with cheque, or any other evidence you have can be submitted to apply for a fixed deposit.

How to Apply for a Long-Term Fixed Deposit?

The process of booking a long-term fixed deposit is very similar to the regular fixed deposit. You can apply online or visit the NBFC/bank branch near you and complete the application process. It is highly recommended to compare the interest rates before booking the FD. Click here to check the interest rate of Shriram Fixed Deposit.

Conclusion

A fixed deposit can be a great option to help you inculcate a healthy savings habit. You can get predictable interest rates and stable returns with a long-term fixed deposit. Now that you have a clear idea of how a long-term FD works start your investment journey today!

Open a Shriram Fixed Deposit to invest for a more structured and stable savings plan. If you wish to withdraw or renew your Shriram FD, the process can be completed online or through authorised branches depending on the chosen investment method.

Key Highlights:

• Investing in a long-term FD may offer relatively higher interest rates compared to shorter tenures depending on the institution.
• Senior citizens can earn more interest on a long-term FD if their NBFC/bank offers additional interest for the elderly.

FAQs

Is an FD good for long-term investment?

Yes, a long-term FD can be a suitable option for investors seeking predictable returns over a fixed tenure.

What is the maximum tenure for an FD?

The maximum tenure for a fixed deposit may go up to 5 years depending on the bank or financial institution.

What are the FD interest rates?

A fixed deposit interest rate is the fixed interest you can get for a deposit over a predetermined period.