Plan your investment
What Our Plans Cover
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A deposit at a contractually fixed...
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Tenures from seven days to ten yea...
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Cumulative or periodic interest pa...
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Auto-renewal at maturity
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Loan or overdraft facility against...
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Nomination facility
Who Can Consider This Plan?
- Indian resident individual, HUF, trust, firm or company
- NRIs, through NRE, NRO or FCNR deposits
- Minors, through a guardian
- PAN, required to avoid a higher rate of tax deduction at source
- Completed KYC with the institution
What May Not Be Covered?
- Any tax exemption — interest is fully taxable at your slab rate
- Protection against inflation
- Any return above the contracted rate if market rates rise
- DICGC cover above ₹5 lakh per depositor per bank
- The full rate on premature withdrawal, where a penalty applies
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading investments companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced investments professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
A bank fixed deposit places money with a bank for a fixed period at a fixed rate. The rate is locked at the outset, the return is contractual, and deposits are insured up to five lakh rupees per depositor per bank under the DICGC scheme.
That certainty is genuine and it is why deposits remain the default Indian savings instrument. For an emergency fund, or for money needed at a known date within a few years, it is exactly the right instrument.
The candid point is what happens after tax. Interest is fully taxable at your slab rate, so a seven per cent deposit returns under five per cent to a taxpayer in the thirty per cent bracket. Where inflation is running above that, the deposit is losing purchasing power while appearing perfectly safe. That is not an argument against deposits; it is an argument against using them for long-term wealth building.
Who should consider it
Anyone holding an emergency fund. Savers with a dated obligation within one to five years. Conservative savers and retirees who need certainty of amount. Anyone who would be unable to tolerate a market fall.
Benefits
- The rate is fixed at the outset and cannot fall
- DICGC insurance up to ₹5 lakh per depositor per bank
- Premature withdrawal available, subject to a penalty
- A loan against the deposit at a small spread over the deposit rate
- No market risk and nothing to monitor
- Senior citizens receive an additional rate, typically 0.5%
What is included, and what is not
Read the right-hand column first. It is the one that tends to surprise people later.
Included
- A deposit at a contractually fixed rate
- Tenures from seven days to ten years
- Cumulative or periodic interest payout options
- Auto-renewal at maturity, where instructed
- Loan or overdraft facility against the deposit
- Nomination facility
Not included
- Any tax exemption — interest is fully taxable at your slab rate
- Protection against inflation
- Any return above the contracted rate if market rates rise
- DICGC cover above ₹5 lakh per depositor per bank
- The full rate on premature withdrawal, where a penalty applies
Terms vary between providers and between plans from the same provider. The offer document you receive is what governs — we will walk you through it before you commit.
How it works with us
- 1 We work out what the deposit is actually for An emergency fund, a dated obligation, or long-term savings. Only the first two are really jobs for a deposit.
- 2 Rates compared across banks, small finance banks and corporates The spread is wider than most savers realise, and so is the difference in safety. We show both sides.
- 3 Tenure and payout structured around your tax position Cumulative or non-cumulative changes when the tax falls due. For some savers that matters more than the rate.
- 4 Opened, with nomination and Form 15G/H handled The two administrative steps savers skip and later regret. We complete both at opening.
- 5 Maturity tracked, and reinvestment decided deliberately Auto-renewal at whatever rate happens to prevail is a decision by default. We flag maturities so it is a decision by choice.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Calculate the after-tax return, not the headline rate. At the thirty per cent slab a seven per cent deposit returns under five, which is where the inflation comparison actually happens.
- DICGC insurance is per depositor per bank, not per deposit. Spreading large amounts across banks increases the insured portion.
- Submit Form 15G or 15H where eligible. Otherwise the bank deducts tax at source and you wait until your return to reclaim it.
- Do not let deposits auto-renew unexamined. Renewal at whatever rate prevails is a decision by default, and rates move.
- For a genuine long-term goal, a deposit is usually the wrong instrument. It is excellent for certainty and poor for growth.
Documents required
- PAN card
- Identity proof — Aadhaar, passport or voter ID
- Address proof
- Recent passport-size photograph
- Existing bank account details, where opening with your own bank
- Form 15G or 15H, where applicable, to avoid tax deduction at source
- Nomination form
Frequently Asked Questions
Is my money completely safe?
Deposits are insured up to five lakh rupees per depositor per bank under the DICGC scheme, covering both principal and interest. Above that limit you rely on the bank's own solvency, which is why large savers spread deposits across institutions.
How is the interest taxed?
Fully, at your income tax slab rate, whether you take it annually or at maturity. Banks deduct tax at source above a threshold. For a taxpayer in the highest bracket, a seven per cent deposit yields under five per cent after tax — which is the number to compare against inflation.
What happens if I withdraw early?
Most banks pay the rate applicable for the period actually held, less a penalty of typically half to one per cent. Before breaking a deposit, check whether a loan against it is cheaper — it usually is, because the deposit keeps earning.
Should I submit Form 15G or 15H?
If your total income is below the taxable threshold, yes — it prevents the bank deducting tax at source, which you would otherwise have to reclaim through your return. Form 15H is for senior citizens, 15G for others.
Are deposits a good long-term investment?
They are excellent for certainty and poor for growth. After tax, deposit returns frequently sit at or below inflation, which means purchasing power erodes slowly while the balance appears to rise. For long-term wealth building, deposits are usually the wrong instrument.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.