What are the Types of Fixed Deposits? A Simple Guide for Smart Savers
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Have you ever wished that, while you’re sitting peacefully at home, your savings are working for you and growing? That’s exactly what a Fixed Deposit (FD) does, quiet, steady, and always delivering. It doesn’t chase trends, it doesn’t panic when the market dips, and it certainly doesn’t demand constant attention. You set it up, it ticks along, and you know exactly what you’ll get at the end. In a world full of financial ups and downs, that kind of certainty can feel priceless for a lot of individuals.
Here’s what’s interesting though, FDs aren’t all alike. In fact, they’ve evolved to suit different needs. Some help you save income tax and others give you a steady flow of income. Understanding these options isn’t just nice to have, it’s what helps you pick the right one for your plans.
Does diversifying savings to FDs make sense?
Putting away all your money in one type of FD might not be the best strategy. Different types of fixed deposit accounts allow you to plan for short-term or long-term needs or save tax. A mix of options can give you flexibility and better control over liquidity. That’s why having different types of Fixed Deposits can be so useful. By spreading your savings across different FD types, you avoid breaking one prematurely, which often means losing interest, and you stay financially flexible.
Here are the various types of Fixed Deposits offered by DCB Bank:
DCB Fixed Deposit
A regular FD is the classic option. A lump sum amount locked in for a set period, earning you assured returns.
For example: Suppose you’re planning a family vacation next summer. A 12-month regular FD ensures your money grows while staying stable until the exact time you need it. It’s a reliable option for short to medium term goals without exposure to market volatility.
Highlights:
• Flexible tenure: from 7 days to 10 years
• Attractive FD interest rates with quarterly compounding
• Payout of interest options: either receive interest from FD monthly, quarterly, or maturity
• Loan or overdraft facility up to 80% of the FD value (as on 23rd September 2025)
• Auto-renewal of the FD so your money keeps working without interruption
DCB Tax Saver Fixed Deposit
Want to save on taxes while growing your money? This FD gives you both benefits.
Take an example of a salaried professional, tax planning becomes essential. You invest ₹1 Lakh in a tax saver FD. You not only reduce your taxable income but also earn stable, fixed returns. This off course is subject to Income Tax rules.
Highlights:
• Tax deduction up to ₹1.5 Lakh under Section 80C
• 5-year lock-in (no premature withdrawal)
• Competitive interest rates
• Minimum deposit: ₹10,000
DCB Pragati Recurring Deposit
DCB Pragati Recurring Deposit is a disciplined, systematic plan designed to help you cultivate a habit of regular saving through fixed monthly installments. Due to minimum deposit requirements, RD makes it easy for individuals who wish to save a large amount of funds over a period, without stressing or stretching their finances now. It’s an excellent option for gradually building a corpus while locking in attractive returns.
For example: Imagine you save the same amount every month just like paying your monthly mobile bill or electricity bill. Over a year or two, those small savings turn into a sizeable amount that you can use for your child’s school fees, a festival expense, or even a short family trip.
Highlights:
• Deposit a fixed amount each month – as minimum as ₹500
• Tenure: 1 to 10 years
• Interest compounded at maturity
• No penal charges on missed deposit instalment
DCB Senior Citizen Fixed Deposit
If you’re 60 or older, you can enjoy an additional interest rate on your FD, a little bonus for the golden years you’ve worked hard to reach. It’s the same stable, predictable growth of a regular FD, but with extra returns just for you.
In everyday life? You’ve just retired and want your savings to keep growing steadily while you focus on travelling, hobbies, or family time. DCB Senior Citizen Fixed Deposit ensures your money works harder for you, giving you that extra cushion without any extra effort.
Highlights:
• Eligible for Indian residents aged 60 years or above at the time of booking the FD
• Additional interest rate over the standard FD rate
• Acceptable proof of age: PAN Card, Passport, Driving License, Voter ID, Pension Card, Government-issued ID, School Leaving Certificate, or Birth Certificate
DCB Senior Citizens Plus Fixed Deposit
DCB Senior Citizens Plus Fixed Deposit, a special offering made for people aged 70 years and above. This deposit provides a higher interest rate compared to what is offered to those in the 60–70 age group, giving extra benefits to customers in their advanced golden years.
Highlights:
• Eligible for anyone aged 70 years or above at the time of booking the FD
• Additional interest rate over DCB Senior Citizen FD
Where DCB Bank fits into your FD story?
When it comes to stability, convenience, and attractive returns, DCB Bank’s range of Fixed Deposits can be your reliable option. DCB Fixed Deposit is perfect for your financial goals, be it short-term, medium-term or long-term goals. DCB Tax Saver Fixed Deposit is a reliable choice during tax season. DCB Pragati Recurring Deposit’s systematic savings plan can help customers cultivate a habit of regular saving through fixed monthly installments. DCB Senior Citizen Fixed Deposit and DCB Senior Citizens Plus Fixed Deposit can benefit senior citizens from a stable income source with extra interest rate, providing greater financial comfort and peace of mind.
A Few Smart Habits for FD Investors
• Compare FD types before locking in your money.
• Choose the cumulative option if you want to maximise compounding.
• Split your funds into multiple FDs with staggered maturities for better liquidity.
• Reinvest interest for steady, long-term growth.
Fixed Deposits might not always grab headlines, but they quietly do the heavy lifting in many people’s financial lives. Whether it’s funding a dream trip, lowering your tax bill, or protecting foreign earnings, there’s an FD tailored for you, and DCB Bank makes it easy to find your fit. Ready to make your money work smarter?
Open the type of Fixed Deposit with DCB Bank suitable to your requirements and enjoy peace of mind for the future.
Disclaimer
Information on the website is for informational purposes only and does not constitute financial advice. Readers are advised to consult financial professionals for personalized advice before making decisions. The information on this blog is subject to change without notice and may become obsolete. DCB Bank reserves the right to modify, update, or remove content at any time. Savings Account and Fixed Deposit Interest rates are subject to change without prior notice. DCB Bank shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decision based on the contents and information mentioned in this blog. By accessing and using this blog, users agree to adhere to these terms and conditions. To read the complete disclaimer of DCB Bank, please click here
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