10.8 C
HomeFINACE LAWFixed Deposit Tips for Students and Working Professionals

Fixed Deposit Tips for Students and Working Professionals

Fixed Deposit Tips for Students and Working Professionals

Fixed deposits are one of the handy schemes which give you money assurance for the money you initially deposit. This scheme is more useful to school or college-going students and also for working professionals. You might not know when you may need additional financial assistance, but at that time, this type of scheme would be way more useful, providing you with financial help. So, here are some tips for students and working professionals on fixed deposits.

Documents Required:

To apply for fixed deposits initially, you may need documents verifying you as a legal customer to the financial institute or bank. So, here are some documents required for applying for fixed deposits.

Your PAN card’s photocopy, voter ID, Aadhar Card, or any other government-issued ID, passport size photograph, residential proof, and other original documents for verifications and application form from the respective bank you will apply for fixed deposits.

Types of FD schemes:

Standard Fixed Deposit

Every bank provides you with standard fixed deposits, and the rate of interest is predetermined. The tenure is only fixed, and no flexibility is available with this scheme. But the tenure may be for 7 days or up to 10 years and gives a higher interest rate than the savings account. The rate of interest may vary across different banking institutions.

Cumulative Fixed Deposit

In this type of fixed deposit, the interest is not paid regularly, and it will be available only during maturity. But these have high-interest rates. It may extend from 1 year to 5 years as per the scheme policy of the respective bank or financial institute.

Non-Cumulative Fixed Deposit

This type of FD is for those who want regular income from the interest quarterly, monthly, or annual. The tenure for this scheme is anywhere from 1 year to 5 years.

Bank Deposits

This scheme is especially for customers who have savings accounts in the respective bank where you apply for FD. But anyway, the fixed deposit interest rates are lower compared to non-banking financial companies.

Regular Fixed Deposit

The rate of interest for this scheme is predetermined and gives you a high-interest rate. Money can be invested regularly, and users can invest according to their wishes for a particular time period.

Tax Saving Fixed Deposit

Mostly every bank provides you with tax-saving fixed deposits. Around Rs. 1.5 lakhs of tax can be exempted annually with this scheme. But it also has a lock-in period for mostly 5 years, so the amount cannot be withdrawn by the customer before that. While depositing, a one-time lump amount should be deposited.

NRIs Fixed Deposit

This one is only applicable for NRIs, PIO, OCI with NRO accounts. They usually provide a higher rate of interest than the normal fixed deposit interest rates scheme. 

The payment mode for this scheme is by NEFT or RTGS from their NRO account. NEFT stands for “National Electronic Funds Transfer,” and RTGS stands for “Real-Time Gross Settlement”.

Flexi Fixed Deposit 

You can initiate this type of fixed deposit interest rates scheme with deposits of your choice. This FD will be linked with your savings account. Either at starting or also later, you can connect with your savings account. There is even an option for customers to limit their savings, and any savings more than the limit will be transferred to the Fixed deposit.

Tips for students and working professionals

Fixed Deposits give loan facilities which can be helpful for any type of financial need. But as students are limited to income, they should be aware of the min and max deposit the bank provides you.

But, there is no max limit. If the deposit goes past Rs. 1 Crore is known as a Bulk Deposit. In such cases, higher interest rates are provided than regular fixed deposits.

If you’re deciding to choose Cumulative Fixed Deposit, there is an option for reinvesting the interest given. You will get this interest at a regular interval.

If you need to withdraw due to an emergency, then make sure you get to know about the withdrawal process from the bank before depositing.


You must investigate not only for fixed deposits but also for banks related to investing your money before investing your precious money. But in this article, you would have known about the various schemes available in fixed deposits and valuable tips for students and working professionals who need fixed deposits. It might be useful for your comparison among the schemes. 


latest articles

explore more


Please enter your comment!
Please enter your name here