Fixed Deposit in Nepal: A Complete Guide
Fixed deposits (FDs) are one of the most popular investment options in Nepal. Many people choose FDs because they offer stable returns with minimal risk. If you’re thinking about opening a fixed deposit account in Nepal, this article will cover everything you need to know—including how to apply, advantages, disadvantages, and whether it’s a good option for you.
What is a Fixed Deposit (FD)?
A fixed deposit (FD) is a type of bank account where you deposit a lump sum of money for a fixed period at a predetermined interest rate. Unlike a regular savings account, you cannot withdraw the money before the maturity period without paying a penalty.
In Nepal, banks and financial institutions offer fixed deposits with varying interest rates depending on the deposit amount and tenure. The interest rates are usually higher than those of regular savings accounts, making it a preferred choice for those looking for low-risk investments.
How to Apply for a Fixed Deposit in Nepal?
Applying for a fixed deposit in Nepal is a straightforward process. Here’s how you can do it:
1. Choose a Bank or Financial Institution
First, research different banks and financial institutions to compare interest rates and terms. Banks in Nepal, such as Nepal Rastra Bank (NRB), Nepal Investment Bank, Nabil Bank, and Global IME Bank, offer FD schemes with different features.
2. Visit the Bank or Apply Online
Many banks now allow customers to apply for fixed deposits online. However, you can also visit a bank branch and fill out an FD application form.
3. Submit Required Documents
You’ll need the following documents to open an FD account:
• Citizenship certificate or passport (for identity verification)
• Recent passport-size photographs
• PAN card (if applicable)
• A filled FD application form
• Initial deposit amount
4. Deposit the Money
Once your application is approved, deposit the money into the fixed deposit account. The bank will provide you with an FD receipt or certificate as proof of your investment.
5. Receive Interest Payments
Interest payments can be received monthly, quarterly, or at the end of the FD tenure, depending on the bank’s policy and your preference.
Advantage of Fixed Deposit in Nepal:
1. Higher Interest Rates
FDs typically offer higher interest rates than savings accounts. In Nepal, the interest rate varies between 6% and 12%, depending on the bank and deposit tenure.
2. Safe and Secure Investmenty
Fixed deposits are a low-risk investment since they are backed by banks and financial institutions regulated by Nepal Rastra Bank (NRB).
3. Flexible Tenure Options
Banks offer flexible tenure options, ranging from a few months to several years, allowing you to choose based on your financial goals.
4. Loan Facility Against FD
If you need urgent cash, you can take a loan against your fixed deposit without breaking it. Banks typically offer up to 90% of the FD amount as a loan.
5. Ideal for Senior Citizens
Many banks offer higher interest rates for senior citizens, making FDs a great option for retirement savings.
Disadvantages of Fixed Deposits in Nepal:
While fixed deposits have many benefits, they also come with some drawbacks.
1. Lower Liquidity
Once you deposit money in an FD, you cannot withdraw it before maturity without paying a penalty. This makes it less flexible compared to a savings account.
2. Inflation Risk
If inflation rises significantly, the real value of your FD returns may decrease over time. For example, if inflation is at 8% but your FD earns 7%, your money is losing value in real terms.
3. Taxable Interest Income
Interest earned on fixed deposits is taxable in Nepal. Depending on the tax laws, you may have to pay a certain percentage of your interest earnings as tax.
4. No Extra Earnings
Unlike stocks or real estate, where the value of your investment can increase over time, FDs only provide fixed returns. There is no opportunity for higher profits.
Who Should Invest in Fixed Deposits?
Fixed deposits are suitable for:
• Retirees and senior citizens looking for a safe investment with stable returns.
• Risk-averse investors who prefer guaranteed income rather than market-linked investments.
• Individuals saving for short-term goals like education, marriage, or travel.
• People who want to park excess funds safely rather than keeping them idle in a savings account.
However, if you are looking for high returns and can take some risk, other investment options like stocks, mutual funds, or real estate may be better for you.
Are Fixed Deposits a Good Investment in Nepal?
Fixed deposits are a good investment for those who prioritize safety over high returns. With stable interest rates and low risk, they offer a secure way to grow your money. However, if you are aiming for long-term wealth creation, diversifying your investment portfolio by including other assets like stocks and real estate may be a better strategy.
Pros of FD Investment in Nepal:
✔ Safe and secure investment
✔ Guaranteed returns
✔ Good for short-term and medium-term goals
Cons of FD Investment in Nepal:
✖ Lower returns compared to stocks or real estate
✖ Limited liquidity
✖ Impact of inflation on returns
Best Banks for Fixed Deposits in Nepal (2025)
If you’re considering opening an FD account, here are some banks that offer attractive FD schemes in Nepal:
1. Nepal Investment Bank – Competitive interest rates and reliable service
2. Nabil Bank – Flexible tenure options and high interest for senior citizens
3. Global IME Bank – Good for corporate and individual fixed deposits
4. Himalayan Bank – Secure and stable investment options
5. NIC Asia Bank – High-interest rates on long-term FDs
Interest rates may change over time, so it’s always best to check with the banks before making a final decision.
Conclusion:
Fixed deposits in Nepal are a great option for individuals looking for a safe and stable investment with guaranteed returns. They are ideal for risk-averse investors, retirees, and those saving for short-term financial goals. However, if you want higher returns and can take some risk, exploring other investment opportunities might be a better choice.
Before investing, compare interest rates, tenure options, and terms offered by different banks. Always consider your financial goals, inflation impact, and tax obligations before locking in your funds.
