How to Apply for a Fixed Deposit in India? Compare Fixed Deposit Rates in India: Fixed Deposits endure one of the most popular investment mechanisms in India, generally due to the low risk and guaranteed returns. Most Savings Accounts offer interest at 3.5 – 4% p.a. whereas Fixed Deposits can provide interest at a rate of up to 9.20% p.a. Hence, those with idle cash in their bank accounts can invest in Fixed Deposits to earn higher returns.
Top banks in the country currently provide a return of up to 7.5 per cent on fixed deposits up to Rs.2crore. State Bank of India (SBI), Punjab National Bank (PNB), ICICI Bank and HDFC Bank offer interest rates to the harmony of 3.5 to 7 per cent per annum to the general public and 4 to 7.5 percent to senior citizens on such fixed deposits or FDs across a range of maturity terms starting from seven days. FD rates of banks are determined by changes in RBI monetary policy such as repo rate, base rate etc., and internal liquidity position of banks, economic conditions and the level of credit demand. FD interest rates of different banks in India vary by deposit amount, deposit tenure and type of depositor. The interest rates are revised from time to time.
Here is the list of banks you need to know about the Best Fixed Deposit Schemes available for Indian citizens in 2019:
Goals to choose for Best Fixed Deposit Scheme in India:
- To choose the best FD scheme available, you should first have a specific financial goal in mind.
- It is always advisable to make deposits in scheduled banks and NBFCs that are certified by ICRA, CRISIL, etc.
- The rate of interest for a specific tenure is of primary importance for depositors. Several banks provide high FD interest rates for different tenure options.
- You should consider the deposit tenure is the interest rate regime (increase or decrease of Interest Rates in future.).
- Banks provide 2 types of fixed deposits in India – Cumulative and Non-Cumulative Fixed Deposits.
- Under a Cumulative FD Scheme, you will not be paid interest over quarterly, half-yearly or yearly. FD interest under this scheme will be compounded every quarter, half-year or year and will be added back to your principal amount, which will be paid at the end of the deposit tenure.
- Under a Non-Cumulative FD Scheme, you will be paid every quarter, half-year or year depending upon the payout option you opt for. This FD scheme is best suited for senior citizens, widows who want regular cash inflows. Regular investors can opt for cumulative FDs for the compounding interest rates.
- For very short Term Deposits the interest rate is similar to that of Savings Account and so you should not worry about FD.
- Does not allow withdrawing deposit amount before maturity. Hence, encourages a depositor to save Premature withdrawals from FD is allowed in emergencies by paying penalty.
Last, but not the least. Carefully plan all your expenses and Apply for a Fixed Deposit only for an amount that you believe you will not require for a minimum period.