What is a FD or Fixed Deposit?
FD or fixed deposits as the name suggests is an investment instrument where you deposit a fixed amount for a for period at pre-confirmed interest rates in a bank or any other financial instrument. The tenure is fixed and there could be implications on your returns in case you decide to cash it before that tenure based on norms at different financial institutes. Fixed Deposits will give you interest rates that are much higher than the usual saving accounts.
The period of fixed deposit can be ranging from simple 7 days and go up to 10 years.
Features of Fixed Deposits
- Fixed deposits tend to drive more interest rates than a normal savings account. Hence if you have surplus of amount in your bank account lying without being used, then you must turn it into a fixed deposit to let you earn a higher amount of interest rates.
- The returns on fixed deposits are assured unless you tend to take out that amount before the maturity period in which case then you may have to pay a penalty.
- One can very easily renew the fixed deposits at the rate which are applicable then.
- Fixed deposits are fully taxable. It will be deducted on your interest and that too will be deducted at the source as per Income Tax Act 1961.
- Fixed deposits are not as dynamic as other investment options in the market but they are one of the safest investment options available in the market. They give assured returns and do not impose any kind of risks on interest or the principal amounts.
- One can very easily invest into fixed deposits to earn interests for his monthly expenses. Different banks offer different interest rates on Fixed deposits hence you can choose your banks accordingly. Also, there are higher interest rates implied for senior citizens.
- Documents required for fixed deposits are same as required for opening a bank account, hence if you already have a bank account you might not have to submit these documents again for fixed deposits associated with that bank account. These documentsinclude you PAN card, your KYC document and ID proofs with signatures.
Best Fixed Deposit rates by Private Banks
Fixed Depoist are an investment intrument that is offered by various banking and non banking institutes where you deposit your moneyfor a lock in period and tend to earn more interest than your saving accounts.
The interest rates of a fixed deposit tend to vary with period for which it is locked in. Shorter period tend to earn more interest then longer tenure when it comes to FD, so it's best way to earn more interest on your surplus amount that is laying in your saving account.
Below are the best options for Fixed Deposit if you are looking for a Private Bank for your
shorter period fixed deposit (less than a year)
- Citi Union Bank - 7.25%
- RBL Bank - 7.15%
- IDFC Bank - 6.75%
- ICICI Bank - 6.25%
- HDFC Bank - 6.25%
Below are the
best Fixed Deposit interest rates in India if you are looking for a Private Bank for your
long period fixed deposit (more than a year)
- Yes Bank - 5.00% - 7.25%
- RBL Bank - 5.00% - 7.25%
- ICICI Bank - 5.00% - 7.25%
- HDFC Bank - 5.00% - 7.25%
- AXIS Bank - 3.50% - 7.00%
Best Fixed Deposit Rates by Nationalize Banks
Often people tend to save their surplus bank account saving in terms of Fixed Deposit. Though they may call upon TDS but it is one of the
safest type of investment without any kind of
market risk involve in it. Saving in nationalize bank means Government's bank gurantee secures your money, though they may be paying a little
less rate of interest then other private sector banks. But,this is because they invest your money in safer loans and government policies.
Below are the best options for Fixed Deposit if you are looking for a
Nationalize Bank for your
shorter period fixed deposit (less than a year)
- State bank of India - 6.35%
- Allahabad Bank - 6.25%
- Andhra Bank - 6.25%
- Bank of India - 6.25%
- Bank of Baroda - 5.75%
Below are the
best Fixed Deposit interest rates in India if you are looking for a Nationalize Bank for your
long period fixed deposit (more than a year)
- State bank of India - 5.75% - 6.85%
- Bank of Baroda - 4.50% - 6.70%
- Central Bank of India - 4.80% - 6.55%
- Bank of India - 5.25% - 6.35%
- Canara Bank - 5.75% - 6.20%
