Best Fixed Deposit Rates
Fixed deposit is a financial facility offered by banks which offers higher rate of interest to the investor on savings account for a pre-agreed maturity date. Fixed deposit is considered to be a very safe investment option, it has a lock in period during which a deposited amount cannot be withdrawn as compared to a recurring deposit or demand deposit and evolved around a fixed term/duration. Interest rates offered by the banks vary from year to year driven by the market, rate range around 4 to 11 percent. Banks have started offering the flexible payment options now which come under a denomination of 7, 15, 45 days 1.5 years and in some cases upto 10 years.
What is fixed deposit scheme?
Fixed deposit is a savings option which lets customers earn interest on your money parked at the bank and the bank offers interest in periodic level on principal amount. Banks offers higher rates on interest on the savings account as the money is locked in for certain period which cannot be withdrawn.
Am I eligible to invest in fixed deposit?
This scheme is open for resident individual, one can avail this facility irrespective of their age. Banks recognize some institution such as partnership firm, public or private limited company at last hindu unified family.
How would I get interest on the deposited amount?
Interest in purely basis of how much money is been deposited under the scheme, customer can expect to reap interest on monthly or quarterly basis.
Do we have capping on the minimum or maximum time period?
Yes. One can deposit the amount for as less as 7 days and for as long as 10 years.
Is there any penalty for early withdrawal of deposited amount?
Yes. In view of early withdrawal, one can expect to earn 0.5 to 1% lower interest on the deposited amount.
How the risk is covered on fixed deposits?
In view of some exigency and unpredicted situation, the FD amount can be dispersed to the nominee on maturity. As a protocol, risk can differ depending on the type of amount.
Quick reference of various banks fixed deposit offerings
The outlined grid gives you a perspective of which banks are offering what rates, the idea on the table below to lend a quick comparison of how things prevail in the current market ecosystem.
|Bank name||Duration of fixed deposit||ROI|
|Bandhan Bank||1 year to less than 2 years||8.25|
|IDFC Bank||366 days||8.25|
|Bandhan Bank||2 years to less than 3 years||8|
|IDFC Bank||401 to 540 days||8|
|IDFC Bank||181-365 Days Or 367-400 Days Or 541-731 Days||7.75|
|Bandhan Bank||3 years to less than 5 years||7.75|
|DCB Bank||36 months to 120 months||7.7|
|DCB Bank||24 months to less than 36 months||7.65|
|City Union Bank||181 days to 1 year||7.6|
|DCB Bank||18 months to less than 24 months||7.6|
|Lakshmi Vilas Bank||1 year to Less than 5 Years||7.5|
|Karur Vysya Bank||91 days to 180 days||7.5|
|IDFC Bank||732 days to 10 years||7.5|
|Bandhan Bank||5 years to less than 10 years||7.5|
Apart from the rates mentioned above, you would notice that the some banks have special schemes for senior citizens and may offer 0.25% to 0.50% more to them. Point to be noted, there is a possibility that the rates sighted may not show the best market rates and many banks have started to offer higher rates when the deposit is 1 crore or more.