Fixed Deposit for Wedding Planning: Securing Financial Stability!

Fixed Deposit

Marriage is one of the biggest steps that an individual takes in life. However, the stress of managing finances and budgeting while planning a wedding can diminish its joy and excitement. And if you are a parent, you likely have the added responsibility of paying for a lavish multi-day event and providing gifts for numerous guests.

Saving in advance is key to ensuring your child starts their new life without debt; therefore, saving and budgeting before the wedding planning is essential. One of the best investment plans for your daughter’s marriage or your son in a risk-free manner is through fixed deposits.

Consider a Fixed Deposit for Securing a Wedding Fund

Here are some factors to keep in mind while investing in FDs for a wedding fund:

Compare interest rates at different banks 

The best investment plan for your child’s marriage is a bank deposit. FDs offer higher interest rates than regular savings accounts. However, interest rates vary between different banks and tenures. Compare rates at major nationalised and private sector banks to find the optimal rate.

Typically, interest rates are higher for longer tenure FDs, e.g. 5 years. But choose a tenure that matches your timeline for the wedding expense. IndusInd Bank offers FDs with high interest rates that can help you grow your money quicker.

Goal-oriented investing

Setting aside a specific amount for your child’s wedding can be challenging, especially with competing priorities. FDs offer a structured approach to saving. By depositing a fixed amount at regular intervals, you cultivate a disciplined savings habit, ensuring you reach your wedding fund goals without dipping into your regular income.

This dedicated savings account also helps you track your progress, boosting your motivation and keeping your wedding dreams on track.

Optimal tenure

The beauty of FDs lies in their flexibility. You can choose a tenure that perfectly aligns with the wedding timeline. Opt for a shorter tenure, say 12-18 months if the wedding is soon. For longer engagements, consider FDs with tenures of 2-3 years, maximising your returns.

IndusInd Bank FDs come with a flexible tenure with options ranging between seven days to 10 years. This allows you to plan meticulously for your wedding and ladder your FDs by splitting your funds across multiple FDs maturing at different intervals.

Such flexibility along with a laddering strategy enables periodic disbursements that you can utilise for specific wedding expenses throughout the planning process. 

Tax implications

The interest earned on FDs is taxable. However, three are exemptions available for certain life events. The maximum tax exemption for a child’s wedding is Rs 1.5 lakh for interest earned in a financial year. You can claim this by submitting Form 15H/15G to the bank.

The principal amount invested in the FD is not taxable. Upon maturity, the entire FD amount can be withdrawn tax-free. But for partial withdrawals during the tenure, tax is deducted at source (TDS) on the interest component. 

Peace of mind

Planning a wedding can be an emotionally charged experience. But with the financial security of an FD, you can breathe easier and focus on cherishing the moments with your family. Knowing the wedding expenses are covered allows you to be present during the planning process, making informed decisions without the gnawing anxiety of financial constraints. 


Unlike some wedding investment plan options, FDs offer flexibility and easy access to your funds. While the locked-in tenure provides security and predictability, most banks offer premature withdrawal options with minimal penalties. This means you can access your funds if necessary without significant financial setbacks.

Bottom line

Opening a fixed deposit specifically for your kid’s wedding is a wise decision to give you peace of mind. Keep your budget in check, save diligently, and you can arrange the wedding of your dreams without worrying about how to pay for it. Review the interest rates various banks offer for the best returns for your kid’s marriage investment plans.

Also, consider FDs that you can book digitally with ease. With IndusInd Bank, you can book an FD instantly online in a few simple steps. Book an instant FD today!

Article and permission to publish here provided by Deepak Sharma. Originally written for Supply Chain Game Changer and published on February 27, 2024.

Cover photo by Alvin Mahmudov on Unsplash.