{"id":7299,"date":"2024-03-21T11:39:18","date_gmt":"2024-03-21T11:39:18","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=7299"},"modified":"2024-08-30T10:28:49","modified_gmt":"2024-08-30T10:28:49","slug":"short-term-fixed-deposit","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/","title":{"rendered":"Short Term Fixed Deposit (FD)"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Fixed deposits are the common name on the investment profiles of many in India. The massive popularity has led to the launch of various types of fixed deposits with different features. Banks, non-banking financial companies, Government, Government-backed entities, and many others currently offer fixed deposits with handsome interest rates.\u00a0<\/span><\/p>\n<p><b><i>Like long-term goals, investors also have short-term goals that can\u2019t be disregarded and for securely making returns, FDs are mostly preferred in India for short-term goals.<\/i><\/b><\/p>\n<p><span style=\"font-weight: 400;\">This discussion is focused on short term fixed deposits. Let\u2019s explore the significant features and benefits of these fixed deposits. We will also take a look at the short term fixed deposit interest rates for 2024 and investment requirements.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Key_Takeaways\" >Key Takeaways\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Defining_Short_Term_Fixed_Deposits\" >Defining Short Term Fixed Deposits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Key_Features_of_Short_Term_Fixed_Deposits\" >Key Features of Short Term Fixed Deposits<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Minimum_Investment_Amount\" >Minimum Investment Amount<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Premature_Withdrawal\" >Premature Withdrawal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Auto-Renewal_Facility\" >Auto-Renewal Facility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Nomination_Facility\" >Nomination Facility<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Benefits_of_Short_Term_Fixed_Deposits\" >Benefits of Short Term Fixed Deposits<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Secure_Investment\" >Secure Investment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Easy_Loan\" >Easy Loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Emergency_Withdrawal\" >Emergency Withdrawal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Liquidity\" >Liquidity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Higher_Returns_than_Savings_Account\" >Higher Returns than Savings Account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Portfolio_Diversification\" >Portfolio Diversification<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Short-Term_Corporate_Fixed_Deposits_Interest_Rates_2024\" >Short-Term Corporate Fixed Deposits Interest Rates 2024<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Short_Term_Fixed_Deposits_Interest_Rates_2024\" >Short Term Fixed Deposits Interest Rates 2024<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Tax_Implications_on_Short_Term_Fixed_Deposit\" >Tax Implications on Short Term Fixed Deposit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Eligibility_Criteria_for_Short_Term_Fixed_Deposits\" >Eligibility Criteria for Short Term Fixed Deposits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Document_Requirement_for_Short_Term_Fixed_Deposits\" >Document Requirement for Short Term Fixed Deposits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Invest_in_the_Short_Term_Fixed_Deposits_with_GoldenPi\" >Invest in the Short Term Fixed Deposits with GoldenPi<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#FAQs_about_Short_Term_Fixed_Deposit_FD\" >FAQs about Short Term Fixed Deposit (FD)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#What_happens_if_I_forget_to_claim_the_FD_on_the_maturity_date\" >What happens if I forget to claim the FD on the maturity date?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Does_deposit_insurance_cover_short-term_fixed_deposits\" >Does deposit insurance cover short-term fixed deposits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Can_I_invest_in_a_fixed_deposit_for_7_days\" >Can I invest in a fixed deposit for 7 days?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Is_long_term_FD_a_better_investment_option_than_short_term_FD\" >Is long term FD a better investment option than short term FD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#What_are_the_requirements_for_NRIs_to_open_a_short_term_fixed_deposit_account_in_India\" >What are the requirements for NRIs to open a short term fixed deposit account in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#Can_I_reinvest_the_short_term_FD_amount_at_maturity_with_a_different_tenure\" >Can I reinvest the short term FD amount at maturity with a different tenure?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/goldenpi.com\/blog\/senior-citizen\/senior-citizen-fd\/short-term-fixed-deposit\/#How_should_I_select_the_best_short_term_FD\" >How should I select the best short term FD?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span><strong>Key Takeaways\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With a minimum investment of Rs 1000, you can start a short-term FD\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Premature withdrawal comes with penalties<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For the convenience of investors, most banks offer an auto-renewal option.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The facility to nominate a beneficiary is available in FD.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">FDs are unaffected by market fluctuations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Up to 95% value of the invested amount in FD can be used to avail loan<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Due to the short-tenure option, they have high liquidity\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The interest rates in FDs are higher than in savings accounts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High-risk investments can be balanced with FD investment in the portfolio <\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Defining_Short_Term_Fixed_Deposits\"><\/span><strong>Defining Short Term Fixed Deposits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-7300 size-full\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13073754\/Defining-Short-Term-Fixed-Deposits.png\" alt=\"Defining Short Term Fixed Deposits\" width=\"1160\" height=\"550\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13073754\/Defining-Short-Term-Fixed-Deposits.png 1160w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13073754\/Defining-Short-Term-Fixed-Deposits-300x142.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13073754\/Defining-Short-Term-Fixed-Deposits-1024x486.png 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13073754\/Defining-Short-Term-Fixed-Deposits-768x364.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13073754\/Defining-Short-Term-Fixed-Deposits-585x277.png 585w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Fixed deposits generally have tenures ranging from 7 days to 10 years. FDs with a tenure between 7 days and 1 year are termed short term fixed deposits. Banks and NBFCs offer these investment tools. These are ideal to meet short term financial goals while ensuring returns and high interest rates.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Features_of_Short_Term_Fixed_Deposits\"><\/span><strong>Key Features of Short Term Fixed Deposits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-7303 size-full\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074849\/Key-Features-of-Short-Term-Fixed-Deposits.png\" alt=\"Key Features of Short Term Fixed Deposits\" width=\"1160\" height=\"550\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074849\/Key-Features-of-Short-Term-Fixed-Deposits.png 1160w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074849\/Key-Features-of-Short-Term-Fixed-Deposits-300x142.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074849\/Key-Features-of-Short-Term-Fixed-Deposits-1024x486.png 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074849\/Key-Features-of-Short-Term-Fixed-Deposits-768x364.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074849\/Key-Features-of-Short-Term-Fixed-Deposits-585x277.png 585w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Here are the important features of short term fixed deposit investments.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Minimum_Investment_Amount\"><\/span><strong>Minimum Investment Amount<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Banks and NBFCs can have different minimum amount requirements for their FDs. Generally, the minimum deposit amount is \u20b9 1000.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Premature_Withdrawal\"><\/span><strong>Premature Withdrawal<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Most FD issuers permit premature withdrawal on short term fixed deposits. However, such withdrawal can be subject to a penalty that the respective issuer determines.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Auto-Renewal_Facility\"><\/span><strong>Auto-Renewal Facility<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You can decide to renew or withdraw the FD at maturity. Many banks offer auto-renewal facilities to enable quick and hassle-free reinstatement.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Nomination_Facility\"><\/span><strong>Nomination Facility<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You can nominate someone under your short term fixed deposits. Make sure to mention the same when opening the FD account.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_Short_Term_Fixed_Deposits\"><\/span><strong>Benefits of Short Term Fixed Deposits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Enjoy the following benefit with short term fixed deposits.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Secure_Investment\"><\/span><strong>Secure Investment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Market fluctuations typically do not influence short term fixed deposits. Therefore, the bank assures the return on them.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Easy_Loan\"><\/span><strong>Easy Loan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You can avail of a loan of up to 95% of your short term FD. The FD is used as collateral and secures the loan. Banks approve the loan without any hesitation and provide lower interest rates than personal loans.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Emergency_Withdrawal\"><\/span><strong>Emergency Withdrawal<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The investment in an FD can be withdrawn before maturity if needed. However, a small penalty is charged for an early withdrawal.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Liquidity\"><\/span><strong>Liquidity<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The short tenure of 1 year or less makes short term FDs highly liquid. These FDs are also a great alternative to regular savings accounts to perk your capital.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Higher_Returns_than_Savings_Account\"><\/span><strong>Higher Returns than Savings Account<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Fixed deposits offer higher interest rates than regular savings accounts. When a sum is required shortly, making a fixed deposit may seem less convenient since you will need it soon. However, with short term fixed deposits, you can invest the sum for a short time and earn better returns without taking on much risk.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Portfolio_Diversification\"><\/span><strong>Portfolio Diversification<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">These fixed deposits are a great way to create a balance against <\/span><a href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/the-market-risks-are-in-the-seen-zone\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">high-risk investments<\/span><\/a><span style=\"font-weight: 400;\"> in your portfolio.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Short-Term_Corporate_Fixed_Deposits_Interest_Rates_2024\"><\/span><strong>Short-Term Corporate Fixed Deposits Interest Rates 2024<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A short-term corporate fixed deposit is an investment in which an individual deposits a given sum of money within a corporate body for an agreed-upon time frame, usually a few months to a few years. These fixed deposits are regarded as a reasonably safe investment option and provide a fixed interest rate for the duration of the agreement.<\/span><\/p>\n<div id=\"footable_parent_7369\"\n         class=\" footable_parent ninja_table_wrapper loading_ninja_table wp_table_data_press_parent semantic_ui \">\n                <div class=\"pcrstb-wrap\"><table data-ninja_table_instance=\"ninja_table_instance_0\" data-footable_id=\"7369\" data-filter-delay=\"1000\" aria-label=\"Short-Term Corporate Fixed Deposits Interest Rates 2024\"            id=\"footable_7369\"\n           data-unique_identifier=\"ninja_table_unique_id_2297388791_7369\"\n           class=\" foo-table ninja_footable foo_table_7369 ninja_table_unique_id_2297388791_7369 ui table  nt_type_legacy_table selectable striped vertical_centered  footable-paging-right ninja_table_pro\">\n                <colgroup>\n                            <col class=\"ninja_column_0 \">\n                            <col class=\"ninja_column_1 \">\n                    <\/colgroup>\n        <thead>\n<tr class=\"footable-header\">\n                                        <th scope=\"col\"  class=\"ninja_column_0 ninja_clmn_nm_shorttermcorporatefixeddeposit \">Short Term Corporate Fixed Deposit<\/th><th scope=\"col\"  class=\"ninja_column_1 ninja_clmn_nm_interestrate \">Interest Rate<\/th><\/tr>\n<\/thead>\n<tbody>\n\n<\/tbody><!--ninja_tobody_rendering_done-->\n    <\/table><\/div>\n    \n    \n    \n<\/div>\n\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Short_Term_Fixed_Deposits_Interest_Rates_2024\"><\/span><strong>Short Term Fixed Deposits Interest Rates 2024<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The table below shows the best short term fixed deposit interest rates. You can notice these corporate FDs offer higher interest rates to senior citizens than regular investors.\u00a0<\/span><\/p>\n<div id=\"footable_parent_7370\"\n         class=\" footable_parent ninja_table_wrapper loading_ninja_table wp_table_data_press_parent semantic_ui \">\n                <div class=\"pcrstb-wrap\"><table data-ninja_table_instance=\"ninja_table_instance_1\" data-footable_id=\"7370\" data-filter-delay=\"1000\" aria-label=\"Short Term Fixed Deposits Interest Rates 2024\"            id=\"footable_7370\"\n           data-unique_identifier=\"ninja_table_unique_id_2810473251_7370\"\n           class=\" foo-table ninja_footable foo_table_7370 ninja_table_unique_id_2810473251_7370 ui table  nt_type_legacy_table selectable striped vertical_centered  footable-paging-right ninja_table_pro\">\n                <colgroup>\n                            <col class=\"ninja_column_0 \">\n                            <col class=\"ninja_column_1 \">\n                    <\/colgroup>\n        <thead>\n<tr class=\"footable-header\">\n                                        <th scope=\"col\"  class=\"ninja_column_0 ninja_clmn_nm_shorttermfixeddeposit \">Short Term Fixed Deposit<\/th><th scope=\"col\"  class=\"ninja_column_1 ninja_clmn_nm_interestrate \">Interest Rate<\/th><\/tr>\n<\/thead>\n<tbody>\n\n<\/tbody><!--ninja_tobody_rendering_done-->\n    <\/table><\/div>\n    \n    \n    \n<\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"Tax_Implications_on_Short_Term_Fixed_Deposit\"><\/span><strong>Tax Implications on Short Term Fixed Deposit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-7305 size-full\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13075006\/Tax-Implications-on-Short-Term-Fixed-Deposit.png\" alt=\"Tax Implications on Short Term Fixed Deposit\" width=\"1160\" height=\"550\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13075006\/Tax-Implications-on-Short-Term-Fixed-Deposit.png 1160w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13075006\/Tax-Implications-on-Short-Term-Fixed-Deposit-300x142.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13075006\/Tax-Implications-on-Short-Term-Fixed-Deposit-1024x486.png 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13075006\/Tax-Implications-on-Short-Term-Fixed-Deposit-768x364.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13075006\/Tax-Implications-on-Short-Term-Fixed-Deposit-585x277.png 585w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">As per the Income Tax Act of 1961, interest accumulated in short term fixed deposits is subject to taxation. A 10% tax is levied on investors who can show PAN. The imposition can increase to 20% for non-Pan holding investors.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_Short_Term_Fixed_Deposits\"><\/span><strong>Eligibility Criteria for Short Term Fixed Deposits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-7302 size-full\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074813\/Eligibility-Criteria-for-Short-Term-Fixed-Deposits.png\" alt=\"Eligibility Criteria for Short Term Fixed Deposits\" width=\"1160\" height=\"550\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074813\/Eligibility-Criteria-for-Short-Term-Fixed-Deposits.png 1160w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074813\/Eligibility-Criteria-for-Short-Term-Fixed-Deposits-300x142.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074813\/Eligibility-Criteria-for-Short-Term-Fixed-Deposits-1024x486.png 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074813\/Eligibility-Criteria-for-Short-Term-Fixed-Deposits-768x364.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074813\/Eligibility-Criteria-for-Short-Term-Fixed-Deposits-585x277.png 585w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The eligibility criteria for investing in a short term fixed deposit varies from one bank to another.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Banks may ask you to open a savings account with them if you don\u2019t hold one already while investing in a short term FD. It is to make the process of transferring interest and other transactions easier.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Most banks offer short term fixed deposits to Indian residents. A few FD issuers may cater to NRI investors\u00a0<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Document_Requirement_for_Short_Term_Fixed_Deposits\"><\/span><strong>Document Requirement for Short Term Fixed Deposits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-7301 size-full\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074740\/Document-Requirement-for-Short-Term-Fixed-Deposits.png\" alt=\"Document Requirement for Short Term Fixed Deposits\" width=\"1160\" height=\"550\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074740\/Document-Requirement-for-Short-Term-Fixed-Deposits.png 1160w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074740\/Document-Requirement-for-Short-Term-Fixed-Deposits-300x142.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074740\/Document-Requirement-for-Short-Term-Fixed-Deposits-1024x486.png 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074740\/Document-Requirement-for-Short-Term-Fixed-Deposits-768x364.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/03\/13074740\/Document-Requirement-for-Short-Term-Fixed-Deposits-585x277.png 585w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The document requirement depends on whether or not you are an existing account holder at the FD issuing bank. New customers, unlike most existing customers, have to produce documents to complete KYC. The following types of documents might be required!<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Identity proof (PAN Card, Aadhar Card, Voter Card, Passport, etc.)<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Address proof (PAN Card, Aadhar Card, Voter Card, Passport, etc.)<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Passport-size photographs<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Invest_in_the_Short_Term_Fixed_Deposits_with_GoldenPi\"><\/span><strong>Invest in the Short Term Fixed Deposits with GoldenPi<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Next time you need an investment tool to put your money for a short period and earn good interest without having to worry about market fluctuations, a short-term fixed deposit will be an ideal option.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Making and monitoring investments should be easy, smooth, and quick, especially in the age of digital banking. While investing in a short-term fixed deposit, you need a comprehensive website where you can not only get all the latest information regarding the best-rated and highest-paying options but also finalise the investment without any hassle. <\/span><a href=\"https:\/\/goldenpi.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">GoldenPi<\/span><\/a><span style=\"font-weight: 400;\"> brings such a reliable investment platform for you. Check out your options, complete the documentation as required, and invest!<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs_about_Short_Term_Fixed_Deposit_FD\"><\/span><span style=\"font-weight: 400;\"><strong>FAQs about Short Term Fixed Deposit (FD)<\/strong><br \/>\n<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_happens_if_I_forget_to_claim_the_FD_on_the_maturity_date\"><\/span><strong>What happens if I forget to claim the FD on the maturity date?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It depends on the policy of your FD issuer. If there is an auto-renewal option, the amount can be reinvested. The FD issuer can also transfer the amount to your savings account linked with the FD.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Does_deposit_insurance_cover_short-term_fixed_deposits\"><\/span><strong>Does deposit insurance cover short-term fixed deposits?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Short term bank fixed deposits are insured by <a href=\"https:\/\/www.dicgc.org.in\/\" target=\"_blank\" rel=\"noopener noreferrer\">Deposit Insurance and Credit Guarantee Corporation (DICGC)<\/a>. This Reserve Bank of India (RBI) subsidiary generally insures bank savings, current, recurring, and fixed deposit accounts with up to \u20b9 5 lakhs.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_invest_in_a_fixed_deposit_for_7_days\"><\/span><strong>Can I invest in a fixed deposit for 7 days?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, you opt for a fixed deposit with a tenure of 7 days in many banks and NBFCs. Based on the issuing entity, you will receive the features and advantages of short term fixed deposits.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_long_term_FD_a_better_investment_option_than_short_term_FD\"><\/span><strong>Is long term FD a better investment option than short term FD?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It depends on your investment goal. If you want to invest a sum for less than a year while ensuring stable returns, short term fixed deposits are suitable. Long term FDs are best suited for long term financial goals.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_requirements_for_NRIs_to_open_a_short_term_fixed_deposit_account_in_India\"><\/span><strong>What are the requirements for NRIs to open a short term fixed deposit account in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0NRIs need to produce valid passports, work permits, and visas to invest in Indian fixed deposits. Remember that the interest rates might be different for NRIs than for Indian residents.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_reinvest_the_short_term_FD_amount_at_maturity_with_a_different_tenure\"><\/span><strong>Can I reinvest the short term FD amount at maturity with a different tenure?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Once the FD matures, you can reinvest with the same tenure or pick a new tenure as offered by your FD issuer.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_should_I_select_the_best_short_term_FD\"><\/span><strong>How should I select the best short term FD?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Look for a short term FD that offers a high interest rate in the market with a tenure and terms that suits your requirements.<\/span><\/p>\n<p><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What happens if I forget to claim the FD on the maturity date?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It depends on the policy of your FD issuer. If there is an auto-renewal option, the amount can be reinvested. The FD issuer can also transfer the amount to your savings account linked with the FD.\"}},{\"@type\":\"Question\",\"name\":\"Does deposit insurance cover short-term fixed deposits?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Short term bank fixed deposits are insured by Deposit Insurance and Credit Guarantee Corporation (DICGC). This Reserve Bank of India (RBI) subsidiary generally insures bank savings, current, recurring, and fixed deposit accounts with up to \u20b9 5 lakhs.\"}},{\"@type\":\"Question\",\"name\":\"Can I invest in a fixed deposit for 7 days?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, you opt for a fixed deposit with a tenure of 7 days in many banks and NBFCs. 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The massive popularity has led to the launch&hellip;<\/p>\n","protected":false},"author":8,"featured_media":7304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[220,222],"tags":[216],"class_list":["post-7299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-fixed-deposit","category-senior-citizen-fd","tag-short-term-fixed-deposit-fd"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Short Term Fixed Deposit (FD) | GoldenPi<\/title>\n<meta name=\"description\" content=\"Secure your funds with Short Term Fixed Deposits at GoldenPi. Enjoy high returns and flexible investment options. 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