Fixed Deposit…Totally New…Pls help

POSTED BY Samad Sheikh ON June 13, 2012 5:45 pm COMMENTS (7)

Hi All
I want to open a fixed deposit of 2 lakhs online from HDFC bank for 2 yrs…It is asking few things and I am confused…as i do not know anything about fixed deposit.I want to get the best out of this fixed deposit and want to forget these 2 lakhs for 2 years.

In Nature of Deposit it asks for 3 options
A. Monthly Interst Payout
B. Quaterly Interst Payout
C. Rinvestment of Interst

Which option should I choose?

In maturity Instructions it is asking
Renew Principal and Interst
Renew Principal only
Do not renew

Pls advise which option should I take

And lastly Interst Payable at maturity etc..
Interst Payable mode

I want to forget this money for 2 years and want to get maximum benefit …so advise me accordingly..
Any other tips..pls advise..

7 replies on this article “Fixed Deposit…Totally New…Pls help”

  1. sibyltrapani says:

    Great Article. discussion . I Appreciate the details . Does someone know if I might be able to get ahold of a sample CMS-40B copy to edit ?

    1. We are not aware of that !

  2. Samad Sheikh says:

    Dear Zoheb and Ashal
    Thank u very much for ur advise…Roughly How much total can I expect after 2 years…
    And what is ur take on Reoccuring deposit…If one also does these deposit…then how should one go about it to have good returns..
    Thanks…Pls reply

    1. Dear Samad, please check your banks’ site for the Interest rate it’s offering for the period & you can calculate the maturity amount also from that. In case of RD, it’s meant for systematic investing to create a corpus at the end of your defined term.



  3. Dear samad, please opt for interest reinvestment & no renewal at maturity if you want money at the end of 2Y term. If you want to continue even after 2Y term, please opt for auto renewal of full amount (principal + interest)



  4. Zoeb says:

    if you want to forget this money for two years then better go for Rinvestment of Interst and if you want this money exactly after two years go for Do not renew else they will again open new fd of rs 2 lacs + interest you gained in two years hope this has answered your query

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