Which Type of FD is Best?

The best type of Fixed Deposit (FD) depends on individual financial goals. Here are the different types of FDs:

• Cumulative FD: Ideal for those seeking long-term growth, as interest is compounded and paid at maturity.
• Non-cumulative FD: Suitable for regular income, with interest payouts monthly, quarterly, or annually.
• Tax-saving FD: Offers tax deductions under Section 80C with a 5-year lock-in period.
• Senior Citizen FD: Provides higher interest rates, making it beneficial for retirees.

Consider these factors when choosing an FD:

• Interest rate
• Tenure
• Lock-in period
• Tax implications

Note: It's always recommended to compare offers from multiple financial institutions and make an informed decision on the FD type based on your individual circumstances as well.