FD Tips: If you know these 7 types of FD, you will become a millionaire..

Investing in a Fixed Deposit (FD) has always been the choice of investors. It is considered an option that gives safe and good returns. In FD, you deposit a lump sum amount for a fixed time and get guaranteed returns without any market risk. But do you know that there are not one or two but 7 types of FD, which are important to understand. So here we are telling about 7 different FD options, which can be useful according to your financial needs.

1. Regular Fixed Deposit

Regular Fixed Deposit is the most common and famous. In this, you can invest for a time ranging from a few months to several years. In this, the interest rate is fixed in advance, and you can get it on a monthly, quarterly, or yearly basis. This is an excellent option for those who want stable and assured returns without any risk.

2. Tax Saver Fixed Deposit

By the way, you get two benefits in this FD - interest and tax savings. Under Section 80C of the Income Tax Act, you get a rebate of up to ₹ 1.5 lakh annually. It has a lock-in period of 5 years; that is, you cannot withdraw money before the time. Interest is taxable, but it is a good option for long-term savings.

3. Digital Fixed Deposit

Digital FD is a completely online fixed deposit facility, in which you do not need to go to the bank branch. Opening an account, completing the KYC process, and tracking returns on investment - everything is done digitally. Actually, it is a very convenient, paperless, and hassle-free investment option for tech-savvy and busy investors, which saves both time and effort.

4. Reinvestment Fixed Deposit
This option is also called cumulative FD. In this, interest is added directly to the investment amount. In this, interest is also received on interest, which increases the amount on maturity. This is a good option for long-term investors who want to create a large amount instead of taking interest immediately.

5. Senior Citizen Fixed Deposit
Let us tell you that Senior Citizen FD* is specially made for people above 60 years of age. It offers higher interest rates (from about 3% to 8.75%) than a normal FD. In this scheme, you can choose short or long term as per your need. Regular interest payment makes it a reliable and safe option for a stable income after retirement.

6. Fixed Deposit Plus
Fixed Deposit Plus gives a higher interest rate, but the minimum deposit amount for this is also higher than the rest. Yes, you can also choose the option of simple interest or compound interest. So this is great for high-net-worth individuals or those who make big investments.

7. Auto FD
This is a mixture of an FD and a savings account. In this, more money than the fixed limit in the savings account automatically goes to the FD. This gives more interest in extra money. There may be a penalty for premature withdrawal, but this option is easy and convenient.

Although the purpose of every FD is different, sometimes it is tax saving, sometimes it is higher interest, and sometimes it is a fixed income after retirement. Choosing the right FD can help you achieve your financial goals and safely grow your savings. (Note: This article is for information purposes only and should not be construed as investment advice in any way. recommend consulting financial advisors for investment)

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