One of the best investment plans which give assured long-term returns is a fixed deposit.
This financial means given by banks and NBFCs allows an investor to deposit a huge amount of money, against which a much higher interest is provided as compared to a savings account.
A fixed deposit is much more secure than other market-led investments, where the returns might not be fixed. However, with an FD, one can be assured about getting fixed guaranteed returns.
So, how do fixed deposits work? To open a fixed deposit, one needs to deposit a huge amount of money in the bank account for a fixed period of time and at fixed interest rate. When the term period gets over, one gets the invested amount and the compound interest.
Some of the benefits of having a fixed deposit are mentioned below:
Now that we know what a fixed deposit is and the benefits any customer can get out of it, let’s look at some of the best options available. Find below a list of the best-fixed deposits in India:
One of India's most trusted banks also offers attractive interest rates on their fixed deposit plans. Fd interest rates in SBI range from 3% to 6.10% for general citizens and from 3.5% to 6.90% for senior citizens.
SBI offers various tenures for its fixed deposit schemes ranging from 7 days to 10 years. The different FD plans and their respective interest rates are as follows:
a. Domestic Term Deposits of less than Rs. 2 crores- The FD SBI interest rate for this plan is 3-6.10% for general citizens and 3.5-6.9% for senior citizens.
b. Domestic Bulk Term Deposits of Rs. 2 crores and more- The interest rate is between 3.5-5% for general citizens and 4-5.50% for seniors.
c. Tax Saving Schemes by SBI- This scheme needs you to keep the deposit for five years without any premature withdrawal, and the interest rate is 6.10% for general citizens and 6.60% for senior citizens.
d. We Care Deposit by SBI for Senior Citizens- This special plan is there only till March 31, 2023, for senior citizens at an interest rate of 6.90% annually. The tenure for this is from 5 to 10 years.
e. Fixed Deposit Schemes for NRI- The interest rates for NRI citizens fall between 3-6.20%
IDFC first bank provides different fixed deposit plans with beneficial rates of interest. They have many flexible tenures in their FD plans along with several features that are customer friendly.
For example, senior citizens do not need to pay any penalty in case of any premature withdrawal. Let’s have a look at the different fixed deposit schemes the bank offers, along with their interest rates.
a. Term Deposits of less than Rs. 2 Crores- With this plan, customers can get an interest rate between 3.5%- 7.25% for general citizens and between 4%-7.75% for senior citizens.
b. Tax Saver Fixed Deposit Plans- Under this plan, one needs to keep the fixed deposit for 5 years, and the interest rate provided for this is 6.50%.
c. Fixed Deposit Plans for NRIs- With IDFC First Bank, even an NRI can create one fixed deposit and the interest rate provided for the same ranges between 3.50%- 6%.
Shriram City is one of the biggest NBFCs in India, offering some of the most attractive interest rates.
They also provide a fixed deposit term of up to sixty months and an auto-renewal facility. Find below the types of fixed deposit schemes offered by this institute.
a. Non-Cumulative Domestic Term Deposits- The tenure for this scheme ranges between 12 months to 60 months, and the interest rate is between 6.78% to 8% monthly. For the quarterly and half-yearly basis, the interest rate ranges between 6.82% to 8.06% and 6.88% to 8.14%, respectively. The annual interest rate for this scheme is between 7% to 8.30%.
b. Cumulative Domestic Term Deposits- The tenure for this scheme is the same as the previous scheme. The interest rate in this scheme ranges between 6.78% to 8% depending on the tenure. Senior citizens get extra interest in these FD schemes.
ESFB was formed in 2007, and they mainly provide micro finance plans. The Fd plans offered by this bank are quite attractive and customer friendly. They offer three types of FD plans which are mentioned below:
a. Domestic FD- The tenure for this FD plan is between 7 days to 10 years, and the interest rate ranges between 3.50% to 7.50%.
b. NRI FD- Unlike the domestic FD plan, the tenure for this plan lies between 1 year to 10 years. The interest rate offered in this plan ranges between 6.75% to 7.50%.
c. NRO FD- For NRO FD plans, the tenure is similar to the domestic plan. Here, the interest rate offered is between the range of 3.5% to 7.5%.
HDFC bank is the most common answer to give whenever anyone has this question about which bank is best for FD. HDFC bank has various fixed deposit plans, including domestic for an amount less than Rs. 2 crores and one which is above this amount.
The interest rate ranges between 3%- 6.25% for the general public, while the same for senior citizens ranges between 3.50% to 7%. Anybody can keep their money for a term anywhere between seven days to ten years.
Mahindra Finance offers various attractive FD plans with a tenure starting from 12 months and 60 months. They offer two plans, Samruddhi Cumulative Scheme and Samruddhi Non-Cumulative Scheme.
In both the plans, the amount can be only up to one crore, and the interest rate ranges between 6.25% to 7.25% for both schemes. Senior citizens and any Mahindra group employee enjoy an additional interest rate if they take up any of these schemes.
Ratnakar Bank Limited, or RBL Bank, is one of the well-known institutes in the private banking sector. They also offer attractive FD plans, including Domestic Fixed Deposit Schemes and Tax Saving Schemes.
The tenure for this FD plan ranges between 7 days to 20 years, and the interest rate is between 3.25% to 7.25%.
Fixed deposit is a much safer investment option which can bring good returns after a certain tenure. However, before investing anywhere, it is crucial to research the interest rates, the credibility of the fixed deposit plan provider and the quality of their customer service.
Making the right informed choice is the key to getting the best return on investment.