Maximise Your Savings: Understanding the Features of Best Fixed Deposit Schemes
May 01, 2025

When it comes to investing your hard-earned money for better returns, fixed deposits (FDs) are often considered one of the best investment options in India. So, if you're starting your FD investment journey, this blog may pique your interest.
In this article, we have provided all the features of the best fixed deposit schemes in India so you can make an informed decision.
Which Fixed Deposits can be Considered 'Best' in the Category?
Most financial institutions offer FDs. However, the differentiator lies in the product features. Here's what you should look into while booking an FD.
1. Higher Interest Rates
Investors prefer FDs that offer higher interest rates. Generally, small finance banks offer higher FD rates compared to traditional banks. However, before booking such, go through the terms and conditions along with service charges to avoid unpleasant surprises.
2. Digital FDs
Digital Fixed Deposits offer convenience. You can book FD online from the comfort of your couch; no paperwork required.
3. Standalone FD
Book an FD should be simple and easy. However, that's not the case every time. Some FDs require you to open a savings account with the bank. The best FD schemes don't come with such requirements - you can just open a standalone FD.
4. Loans Against Fixed Deposit
One of the unique features of fixed deposits is the ability to avail loans against them. In times of financial emergencies, having a fixed deposit account can come in handy.
Some FDs offer loans up to 75% of the deposited amount. However, the specific loan-to-deposit ratio can vary depending on the scheme and may differ from one bank to another.
5. Maximum Security
Best FD schemes ensure maximum security - both in terms of transactions and returns. Though deposits up to ₹5 lakh are protected under Deposit Insurance and Credit Guarantee Corporation (DICGC), it's best for you to go for a financial institution known for safe and secure transactions.
6. Additional Benefits
Most FD schemes allow premature withdrawals. However, a certain penalty can be imposed if you close your account or withdraw your money before the maturity date. But there are schemes that don't levy charges on premature withdrawals, subject to terms and conditions. Other benefits like minimal documentation, easy-to-book process, priority banking services, easy account access via Mobile or WhatsApp Banking, exceptional customer support, etc., are some of the traits of best fixed deposit schemes.
Point to Note: Ujjivan SFB FDs do not charge premature withdrawal penalty beyond 6-month tenure.
7. Multiple Payout Options
Best fixed deposit schemes provide flexibility with multiple interest payout options - monthly, quarterly, or at maturity. This simplifies income management and suits different cash flow requirements efficiently. You can choose a payout schedule that suits your needs and preferences.
Final Thoughts
Consider these features while booking an FD. Point to note - best FD schemes offer convenience. So, apply for FD schemes that comes with additional benefits to simplify your financial life.
Looking to grow your savings? Ujjivan SFB offers a wide range of fixed deposit products. Select the FD of your choice and take a step forward to your financial goals. Alternatively, you can browse through Ujjivan SFB product suite - our wide range of financial products are designed to make your financial life better.
FAQs
1. What is the minimum tenure for FDs?
The minimum tenure for the FDs varies across banks but can be as short as 7 days.
2. Is a fixed deposit the best investment option?
Fixed deposits are among the safest investments, offering guaranteed returns suitable for risk-averse investors.
3. How is the interest on FDs taxed?
Interest is taxable under income tax laws and depends on the tax bracket you fall under.
4. Can I take a loan against my fixed deposit?
Yes, many banks and financial institutions offer loans against fixed deposits, allowing you to access funds without breaking your FD.
5. Are senior citizens eligible for higher interest rates?
Yes, as mandated by RBI, senior citizens are often offered higher interest rates. However, not all FD schemes may come with this facility.
6. How to choose the best FD plan?
Before selecting a fixed deposit scheme, evaluate factors like security, reputation of the institution, benefits like simplified FD booking, customer support, etc.
7. Can I get monthly interest payouts from my fixed deposit?
Yes, non-cumulative FDs offer periodic interest payouts, which helps in creating a source of regular income.
Latest Blogs

Why Akshaya Tritiya Is the Ideal Time to Open a Savings Account
April 29, 2025
Akshaya Tritiya, often hailed as one of the most auspicious days in the Hindu calendar, symbolises unending prosperity, success, and growth.

Earn Higher Interest Rates on Fixed Deposit with This Account
March 28, 2025
The RBI’s Monetary Policy Committee cut the repo rate by 25 basis points to 6.0% in its April 2025 meeting, marking the second consecutive reduction within six weeks to support growth amid benign inflation.

RBI’s New Rules for Savings Accounts for Kids: A Big Push Towards Early Financial Empowerment
April 25, 2025
The Reserve Bank of India (RBI) has taken a significant step towards financial empowerment of minors by issuing a fresh set of guidelines on the opening and operation of deposit accounts by children.

Best Current Accounts in India: Simplify Your Business Transactions
April 22, 2025
In the fast-evolving world of Indian business, having a reliable current account is more than just a financial necessity—it’s a strategic asset.

Top Savings Account Schemes to Start the New Financial Year 2025–26
April 19, 2025
The beginning of a new financial year isn’t just about filing taxes or revisiting your investment strategy—it's also the perfect time to re-evaluate where you park your money.
Quick Links
Registered with DICGC

