Certificate of Fixed Deposit

A financial institution (such as a bank, credit union, or a finance or insurance company) account that pays more interest than savings and current account but imposes conditions on -- the amount, frequency, and/or period of withdrawals issues a certificate of deposit (CD) for the Fixed Deposit (FD) and that is what is known as Certificate of Fixed Deposit.

Fixed Deposit (FD) or Term Deposit (TD), Term Deposit Scheme (TDS)is an account where we deposit money for a fixed period of time and a certificate is given stating the following:

Name of the depository institution.
The date depositing the money.
The receipt number.
The name of the depositor or the name of the person who has been gifted.
The money deposited.
The time period for which it is deposited.
The rate of interest on the sum deposited.
The time period for which it has been deposited.
The total amount that can be withdrawn after completion of the term or maturity.

After the completion of the deposit period the depositor can take out the money that was deposited plus the interest upon submission of the Certificate of Fixed Deposit or if desired can make a fresh Fixed Deposition.

A certificate of deposit (CD) or fixed deposit account, lets us to invest a fixed amount of money for a fixed period of time (seven days up to ten years) at a fixed rate of interest for minimum amount of Rs. 1000 to Rs. 10000 (variable from bank to bank) and we can earn interest at regular intervals.

==Why chose Fixed Deposit Certificates==?
Certificate of Fixed Deposit generally offer a higher interest rate in comparison to a savings or current account and if you redeem your Certificate of Fixed Deposit before the maturity date, most banks charge an early withdrawal fee.

Types of FD Certificates in India

Fixed-deposit investors obtain their Certificate of Fixed Deposit through local banks or credit unions.
National Savings Certificate (NSC), one of the Indian post offices.
They can also be obtained through a brokerage firm, perhaps at a higher rate of interest.
Flexi Fixed Deposit Scheme where the funds are deposited as a fixed deposit but with the advantage of cash being available in Savings Banks/Current Account.