FD Interest Rates: Best Fixed Deposit Rates

FD Interest Rates: Best Fixed Deposit Rates - Dream Big Institution

FD Interest Rates: Best Fixed Deposit Rates

 

 What is a Fixed Deposit?

 

Fixed deposits are investment instruments offered by banks and non-banking financial companies, where you can deposit money for a higher rate of interest than savings accounts. You can deposit a lump sum of money in fixed deposits for a specific period, ranging from 7 days to 10 years. 

Once the money is invested with a reliable financier, it starts earning an interest based on the duration of the deposit. Usually, the defining criteria for FD is that the money cannot be withdrawn before maturity, but you may withdraw them after paying a penalty.

 

Features of Fixed Deposits

 

  • • Fixed deposits enable investors to earn higher interest on their surplus funds
  • • You can deposit money in a fixed deposit account only once, but to deposit more money, you need to create another account
  • • Though liquidity in fixed deposits is lesser, you can look for higher rates of interests, which are higher in case of company fixed deposits
  • • Fixed deposits can be easily renewed
  • • Tax is deducted at source, from interest on Fixed Deposits as applicable, as per the Income Tax Act, 1961.
  • Benefits of Fixed Deposits


There are several advantages of fixed deposit investments, some of which have been given below:

  • • They are the safest investment instruments and offer greater stability
  • • Returns on fixed deposits are assured, and there is no risk of loss of principal
  • • You can opt for periodic interest payouts, to help you manage your monthly expenses
  • • There is no effect of market fluctuations on your fixed deposits, which ensures greater safety of your investment capital
  • • You can benefit from higher interest rates offered by company fixed deposits
  • • Some financiers also offer greater returns for senior citizens
  •  

 

 Bank Interest Rates 2018

 
FD Interest Rates: Best Fixed Deposit Rates - Dream Big Institution
 


Bank FD is a risk-free investment and best FD rate of 8.75% offers moderate returns enough to cover inflation rate. As a depositor, you need to be careful before choosing FDs of non-banks, as unlike bank FDs, these FDs carry market and credit risk. The level of risk with non-bank FDs is reflected in the level of credit ratings assigned to the FDs of NBFCs and HFCs.
Bank FDs being risk-free, are not required to get credit ratings done and also offer slightly lower interest rates than that of FDs of non-banks.

The rate of Interest on bank FDs varies by the amount of deposits, tenure of deposits and type of depositor.

Deposit Amount: Banks offer a lower interest rate on bulk deposits of more than Rs 1 crore and the high-interest rate on deposits of less than Rs 1 crore.
Deposit Tenure: Banks offer the lower rate of interest on deposits with a shorter tenure. Based on current rates, the highest rate on FDs with a tenure of less than 1 year is 7.75% and the highest FD rate on longest tenure FD of 10 years is 8.25%

Depositor Type: All banks in India offer higher interest on senior citizens FDs. Currently, the interest rate on senior citizens FDs ranges from 3.50% to 9.15% depending on the deposit amount and deposit tenure.


The underlying advance in finding the standard settled store rates will be to pitch out your correct prerequisites. 

Is it true that you are supposing to go for drawn-out term ventures? 

Is it accurate to say that you are prepared to go out on a limb? 

You may not be sure! You may put resources into the long course, yet there are openings, and you can acquire the total before the foreordained period. 

In view of a couple of raw numbers, you can pick the best-settled term store. 

Finding the Right Financial Organization and the Service: 

It is prescribed to search for banks, rather than associations that issue settled store approaches for the financial specialists. A few banks offer nice loan fees in a brief period, and others may give better enthusiasm for a more extended run. The loan costs permitted by the banks change frequently. You have to check the freshest rates given by the diverse banks from their individual sites. 

Go to a Company just if: 

A lot of associations likewise offer FD approaches. The loan fees are lucrative. Despite the fact that a large portion of the associations satisfies the guarantee, others might be a Ponzi plot. 

To stay away from any sort of disappointment, read about the organization over the web, check whether it is a recorded and dependable name, and furthermore that it has no history of fake exercises.

A little hard work and research will fetch you a great benefit in the minimum time possible. All you need to do is deposit your saved funds in the bank account and see your money multiply with time. Ensure that you benchmark with multiple sources to keep maximum alternatives available with yourself.

FD Interest Rates: Best Fixed Deposit Rates - Dream Big Institution



Top 10 Banks Fixed Deposit Interest Rates in India


Bank Name
Tenure
Interest Rate(p.a.)
Axis Bank
7 days – 10 years
3.50% – 6.90%
Bank of Baroda
7 days – 10 years
4.25% – 6.60%
Bank of India
7 days – 10 years
5.25% – 6.25%
Canara Bank
7 days – 10 years
4.20% – 6.00%
Central Bank of India
7 days – 10 years
4.75% – 6.50%
HDFC Bank
7 days – 10 years
3.50% – 6.00%
ICICI Bank
7 days – 10 years
4.00% – 6.50%
State Bank Of India
7 days – 10 years
5.75% – 6.75%
Yes Bank
7 days – 10 years
5.00% – 7.00%

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