Fixed Deposit: A Secure Way to Invest

Fixed Deposit: A Secure Way to Invest
Fixed deposit is a way to save money and is also the best investment instrument in Nepal

Not everybody can successfully save money all the time. However, saving money is one of the most critical aspects of building wealth. Keeping a small portion of your earnings helps you enjoy a quality life. Irish poet and dramatist, Oscar Wilde, once said, “When I was young I used to think that money was the most important thing in life; now that I am old, I know it is.”

Fixed deposit is a way to save money and is also the best investment instrument in Nepal
Oscar Wilde

People who spend money wisely and develop the habit of saving it could grow wealth exponentially. There are various ways to save money today. A Fixed deposit is one, and it is still Nepal’s most sought-after investment instrument. So what is a Fixed Deposit and how does it works let us find out more about it:

What is a Fixed Deposit?

A Fixed Deposit, also known as an FD, is an investment instrument offered by banks and financial institutions to their customers to help them save money. With an FD account, you can invest a sizeable amount of money at a predetermined rate of interest for a fixed period. At the end of the tenure, you receive the lump sum, along with an interest, which is a good money-saving plan. Banks offer different rates of interest for a fixed deposit account.

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Fixed Deposit: A Secure Way to Invest

Why is Fixed Deposit preferred more?

Fixed Deposits are preferred because when you open an account at a specific interest rate, it is guaranteed, for the rate of interest remains the same, irrespective of any changes, which happen due to market fluctuations.

Fixed Deposit: A Secure Way to Invest

The interest you earn is either paid at maturity or on a periodic basis depending on your choice. You are not allowed to withdraw the money before maturity. If you want to, you have to pay a premium rate for it.

What are the features of Fixed Deposit?

To know what is a fixed deposit clearly, one needs to know its prime features. Here are the significant ones:

Assured Returns

The returns of a fixed deposit are guaranteed. You will get the same return agreed upon at the time of opening an FD. This is not the case with market-led investments, which offer returns based on the fluctuations of interest rates in the market. You will receive the same interest that was agreed to you, even if the interest rates fall. This makes the fixed deposit more secure than any other investment.

Rate of Interest

The interest rate on a fixed deposit varies depending on the term you choose. However, the rate of interest is fixed. If you want to know the current FD interest rates, you can visit the bank’s websites.

Offers Flexible Tenures

Banks offer various kinds of flexible tenure for schemes for which one has to contact the bank first to know more about it

Return on Investment

The interest you earn on it depends on the maturity period or tenure of the FD. With a higher tenure, you earn a higher interest. Moreover, the returns you get on your investment depend on whether you opt for receiving the interest periodically or reinvesting the interest, which is called a cumulative FD. You gain the benefit of compounding with this FD.

Loan against FD

You can avail of a loan against your fixed deposit in case you are in urgent need of funds. This saves you from closing your FD prematurely.

Fixed Deposit: A Secure Way to Invest
Benefits of fixed deposits in India

What is the minimum amount for a fixed deposit in Nepal?

The minimum deposit amount for this is NPR 5,000 and above in multiples of NPR 100. The minimum deposit period is from 6 months to 84 months in multiples of 6 months.

Fixed Deposit: A Secure Way to Invest
An advertisement about 199 days worth of Fixed Deposits (Image Credit: My Republica)

Fixed Deposit Schemes Available in Nepal:

To find out about the schemes available click on the name of the bank in the given list:

  1. Kumari Bank
  2. Nepal Bank
  3. Rastriya Banijya Bank
  4. Agriculture Development Bank
  5. Nabil Bank
  6. Nepal Mega Investment Bank
  7. Standard Chartered Bank Nepal
  8. Himalayan Bank
  9. Nepal SBI Bank
  10. Everest Bank
  11. Prabhu Bank
  12. Laxmi Bank
  13. Global IME BOK Bank Limited
  14. Citizens Bank International
  15. Prime Commercial Bank
  16. Sunrise Bank
  17. NMB Bank Nepal
  18. NIC Asia Bank
  19. Siddhartha Bank
  20. Machhapuchchhre Bank
  21. Sanima Bank


So it depends upon the customer to choose from which bank to which scheme for their future

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