All you need to know about Highest fixed deposit interest rates

New Delhi, News Nation Bureau | Updated : 29 April 2019, 06:16 PM
All you need to know about Highest fixed deposit interest rates (Representational Image)
All you need to know about Highest fixed deposit interest rates (Representational Image)

Fixed Deposit or Term Deposit is always considered as an attractive investment option for individuals to meet short term as well as long term financial goals. Fixed deposit is one of the safest investment options, which provides high rate of interest on the deposit amount with low risk involved. It is the best-suited investment option for investors looking out for an investment option which is not linked to market conditions and thus safer.

While investing in a fixed deposit, you need to deposit a certain amount of money with a bank or financial institution for a deposit tenure and FD interest rate specified by the bank or financial institution. Usually, fixed deposit tenure ranges from 7 days to 10 years for most of the banks. Nowadays, FD interest rates go as high as 9% p.a.

It is an ideal investment option for individuals looking for a risk-free investment option. Fixed deposit offers fixed returns over a specified deposit tenure that an investor opts for. Fixed deposit can help you in earning more than savings account and also offer preferential interest rates for senior citizens and bank staff. It also offers you with benefits like loan against fixed deposit, fixed returns, credit card against FD and much more.

Fixed deposit rates vary depending upon deposit amount, tenure and as well as from one bank to another. For instance, SBI fixed deposit rates usually vary from 5.75% to 6.85% in India. Whereas, Ujjivan Small Finance Bank provide its investors as high as 8.60% on their deposits.

This makes it essential for you and all the other investors to check and compare fixed deposit interest rates from several banks and financial institutions before investing. Comparing FD interest rates from several banks will help you maximise your returns.

How are fixed deposit rates calculated?

The return on making investment in fixed deposits are calculated on the basis of deposit amount, tenure and fixed deposit interest rates. FD interest rate is compounded monthly / quarterly / half-yearly / annually and added back to the principal amount. The compounding of a fixed deposit varies from one bank to another. You can use an FD calculator to make these laborious calculations easier and less time taking. So, it is always recommended to all the investors to compare different bank FD rates, calculate the returns on your FD and the maturity amount using an FD calculator.

Top 10 Fixed Deposits in India

Fixed deposits are offered by all the major banks in India such as SBI, ICICI Bank, HDFC Bank, PNB, Yes Bank, Axis Bank, and many others. Not only all the major banks in the country offer FDs, but also all the small finance banks like Ujjivan Small Finance Bank, Jana SFB, Fincare SFB among many others offer FDs in India. While all the major banks in India usually don’t offer higher than 7.5% in India, some small finance banks go as high as 9% interest p.a. On the other hand, SBI fixed deposit rates usually range from 5.75% to 6.85% per annum.

Following are the top 10 FD interest rates, which are provided by major banks and small finance banks in India. YES Bank, Canara Bank, SBI fixed deposit rates and some other bank FD rates (for regular individuals & senior citizens) for duration of up to 1 year are mentioned below:

Bank

Rate of Interest*

Deposit Tenure

Regular Individuals

Senior Citizens

ESAF Small Finance Bank

8.75%

9.25%

365 - 727 days

Ujjivan Small Finance Bank

8.30%

8.80%

1 year to 2 years

IndusInd Bank

8.00%

8.50%

1 years to 1 years 2 months

Yes Bank

7.50%

8.00%

12 months 10 days to

12 months 20 days

DCB Bank

7.40%

7.90%

12 months 1 day to less than 15 months

Standard Chartered Bank

7.40%

7.90%

1 year – 375 days

Axis Bank

7.30%

7.95%

1 year < 1 year 5 days

HDFC Bank

7.30%

7.80%

1 year

Canara Bank

7.00%

7.50%

1 year

State Bank of India

6.80%

7.30%

1 year to less than 2 year

*Fixed Deposit Interest Rates are subject to change without any prior information.

The top 10 Company Fixed Deposit Interest rates for a duration of up to 1 year are mentioned below:

Bank

Rate of Interest*

Deposit Tenure

Regular Individuals

Senior Citizens

Shriram Transport Finance

8.88%

9.11%

60 months

Bajaj Finserv

8.75%

9.10%

36 – 60 months

Mahindra Finance

9.00%

9.10%

33 months

Sundaram Finance Company

8.00%

8.50%

24 months

DHFL

9.00%

9.40%

36 months

HUDCO

7.50%

7.75%

24 months

LIC Housing Finance FD

8.30%

8.55%

5 years 

PNB Housing FD

8.45%

8.45%

60 - 71 months

ICICI Home Finance FD

8.30%

8.55%

60 months

Hawkins Pressure Cooker FD

10.75%

10.75%

36 months

*Fixed Deposit Rates mentioned above are under Cumulative Fixed Deposit Scheme and are subject to change without any prior information.

Benefits of investing in a Fixed Deposit

Fixed deposit help you earn fixed returns over a specified period of time. A part of your total investments in fixed deposit can diversify your portfolio and provide secure investment as well. Listed below are the benefits of investing in a fixed deposit:

Fixed Returns and Secured Deposits – With fixed deposits, you get fixed returns over the deposit tenure. You as an investor will earn the same returns mentioned at the time of making the deposit. Unlike investments like mutual funds and share market, fixed deposit is a safe investment option with low risk involved.

Higher Rate of Interest – Fixed deposit helps you get higher returns than savings account. Savings account usually earns you 3.50% interest on the funds kept in the account. But, on the other hand, fixed deposit earns you as high as 9% interest on the investment made.

Premature Withdrawal – With fixed deposit, you get the option of premature withdrawal to cater to all the financial needs at hand. Banks levy premature withdrawal penalty, when any investor opts to withdraw deposit amount before the maturity date.

Loan on Fixed Deposit – Banks provide loan on fixed deposit option to all the investors. You can avail loan against FD to an extent of 90% of the principal amount.

(This story has not been edited by News Nation staff and is generated from a syndicated feed)

First Published: Monday, April 29, 2019 06:04 PM
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