Money won’t grow in your mattress.
It will grow in a Fixed Deposit!
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    We found 112 Fixed Deposit versus Debt Mutual Fund

    Institution Name
    Deposit Amount Range
    Tenure Range
    Interest Rate
    Up to ₹25L
    1 Year to 5 Years
    7.49% - 8.19% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    Up to ₹25L
    1 Year to 5 Years
    7.75% - 8.5% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 20 Years
    5% - 8% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7.25% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4.25% - 7.05% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    Up to ₹1Cr
    15 Days to 20 Years
    4.25% - 7.25% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 5 Years
    6.5% - 6.8% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 10 Years
    6% - 6.75% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year onwards
    6.25% - 6.5% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7.30% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 5 Years
    6.80% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
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  • Fixed Deposit versus Debt Mutual Fund Reviews

    • Central Bank of India Fixed Deposit
      "CBI is the best bank for Fixed Deposit"
      0.5 4.5/5 "Excellent!"
      HI! This is Santosh, I had been using from last 8 years with best service without any issue. This Bank Fixed Deposit rate of interest is higher then other banks. The Banking and services are good, There is no Fixed deposit breaking charges. I will recommend this Bank for the Best FD services.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 18, 2017
    • HDFC Bank Fixed Deposit
      "Go ahead with your choice"
      0.5 4.0/5 "Great!"
      I have the fixed deposit account with the HDFC bank and I been with them from the last three to four years of time. The rate of interest was reduced as of now but I have got it as fixed. Customer service and other things are really okay and I have not interacted with them.
      Was this review helpful? 1
      , chennai
      Reviewed on Jul 06, 2017
    • SBI Fixed Deposit
      "Wonderful "
      0.5 4.0/5 "Great!"
      I had the fixed deposit account with the State bank of India and the interest rate was around 6% to 7% before three years of time. Response and other aspects are good enough. Customer service was also good one and their online banking services are up to the mark.
      Was this review helpful? 6
      , visakhapatnam
      Reviewed on Jul 03, 2017
    • ICICI Bank Fixed Deposit
      "Its Good"
      0.5 4.0/5 "Great!"
      In terms of interest rate, ICICI IS providing lower benefits for Fixed deposit account. For premature they not calculating the proper interest rate. It would be better to give clear information about interest rate calculation within the period of transaction.
      Was this review helpful? 4
      , chennai
      Reviewed on Jun 30, 2017
    • SBI Fixed Deposit
      "Its Average"
      0.5 2.0/5 "Expected more"
      I am having recurring deposit with SBI, I opened the RD by visiting SBI branch. On the same day RD account got activated. But I felt interest rate is low they offering only 7.1% of interest, I have invested the amount of Rs. 1 lakh for the tenure of 15 month, after maturity of the RD. I would be getting the return around 1.08 lakh.
      Was this review helpful? 3
      , ahmedabad
      Reviewed on Jun 30, 2017
    • ICICI Bank Fixed Deposit
      "Good for tax saving "
      0.5 5.0/5 "Blown Away!"
      I have opened the fixed deposit through ICICI I mobile application, I have invested the amount of Rs.5000 for the tenure of five years. After the tenure I would be getting Rs.20,000 as a return. I could track the fixed deposit details over the netbanking.
      Was this review helpful? 5
      , bangalore
      Reviewed on Jun 29, 2017
    • HDFC Bank Fixed Deposit
      "Best"
      0.5 4.0/5 "Great!"
      I do have fixed deposit account with the HDFC bank and the interest rate is common one with every bank like it used to get varied up to 0.5% . Penalty charges are nil with them for the premature withdraw, which is the really good one.
      Was this review helpful? 5
      , chennai
      Reviewed on Jun 22, 2017
    • SBI Fixed Deposit
      "Good Service"
      0.5 4.0/5 "Great!"
      When I have started to deposit the money I was getting good interest rate but know the rate of interest is decreased with SBI Fixed deposit. I have started the fixed deposit around 6 years ago with SBI. Initially I got around 9.5% as interest rate but now I am getting only 7.5% interest rate. The service with State is good.
      Was this review helpful? 6
      , bangalore
      Reviewed on Jun 22, 2017
    • Canara Bank Fixed Deposit
      "Good"
      0.5 2.5/5 "Just OK"
      I am having the fixed deposit account with the Canara bank and the rate of interest is around 8.5%, which was very lesser one on that time. Total tenure is around three years of time, also the penalty charges are not really huge. Customer service is not really up to the mark.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 20, 2017
    • IDBI Fixed Deposit
      "Good experience"
      0.5 5.0/5 "Blown Away!"
      I would suggest IDBI bank is the best one to get the fixed because of the good rate of interest . Customer service is good one and am with them from the last three years of time. Penalty charges are lesser one with the m for the premature withdraw.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jun 19, 2017
    • ICICI Bank Fixed Deposit
      "Good Indian bank"
      0.5 4.0/5 "Great!"
      I do have fixed deposit account with the ICICI bank and the interest rate is around 6.5% per annum , also the maturity period is also one year of time. Customer service is also a good one with the ICICI bank, also the response too. Online banking services are also working in good way and am very familiar with them till now.
      Was this review helpful? 3
      , bangalore
      Reviewed on Jun 16, 2017
    • Axis Bank Fixed Deposit
      "Its good investment"
      0.5 4.5/5 "Excellent!"
      I have invested one lakh in fixed deposit with AXIS bank. Its going to matured in this august, Then I would be getting around Rs.1.12,000. I have opened this FD through online and I will be getting the amount same to my account. AXIS gave me premature withdrawal, I can close whenever I want.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 13, 2017
    • Canara Bank Fixed Deposit
      "For common man"
      0.5 5.0/5 "Blown Away!"
      I do have the fixed deposit account with the Canara bank and am using it from the last ten years of time. Customer service aspects are good one with them and the online banking services are not really working in a good according the new generation bankers. The interest rate is around 7.25% as of now.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 12, 2017
    • YES Bank Fixed Deposit
      "Wonderful "
      0.5 5.0/5 "Blown Away!"
      I have the fixed deposit account with the Yes bank and the interest rate is around 6.5% above and the customer service is not yet experienced because everything used to dealt with through online experience. I have not faced any server down issues with the Yes bank.
      Was this review helpful? 3
      , ghaziabad
      Reviewed on Jun 12, 2017
    • HDFC Bank Fixed Deposit
      "Excellent "
      0.5 5.0/5 "Blown Away!"
      I am having the fixed deposit account with the HDFC bank and the services are always an excellent one. I have opened the account on immediate basis like everything used to get happened in instant way. Rate of interest is around 6.5% and the response is an excellent one.
      Was this review helpful? 1
      , mumbai
      Reviewed on Jun 09, 2017
    • Vijaya Bank Fixed Deposit
      "Excellent "
      0.5 5.0/5 "Blown Away!"
      I am having the fixed deposit account with the Vijaya bank and the interest rate is around 6.5% and the customer service is good one , also they are nearby my locality and also the access is really friendly. Online services are good one with the Vijaya bank.
      Was this review helpful? 1
      , mumbai
      Reviewed on Jun 09, 2017
    • Central Bank of India Fixed Deposit
      "Fund transfer"
      0.5 0.5/5 "Unacceptable"
      The worst banking system I have ever seen. if i want to transfer amt to other bank through IFSC they can't detect the bank or automatically logged out .if I want current statement they can't.net banking automatically logged out.if i go for pass book entry server down problem. if I go to ATM only 2k available etc...
      Was this review helpful? 4
      , kolkata
      Reviewed on Jun 01, 2017
    • SBI Fixed Deposit
      "Very good in services"
      0.5 5.0/5 "Blown Away!"
      When I wanted to open a fixed deposit account at State Bank of India. I did not have to visit the bank. I opened the account online and though the rate of interest is not that appealing. I am happy with the overall experience and process and the convenient banking process.
      Was this review helpful? 11
      , guwahati
      Reviewed on May 31, 2017
    • SBI Fixed Deposit
      "Convenient to Hold"
      0.5 4.0/5 "Great!"
      It has been two years when I opened fixed deposit with State bank of India. The period is for five years. Since I completed two years, three years to go. Interest rate is of 11%. Actually SBI is located near to my house so I feel more comfortable in visiting the bank at any instance. All the staffs are very friendly and very cooperative.
      Was this review helpful? 6
      , visakhapatnam
      Reviewed on May 25, 2017
    • SBI Fixed Deposit
      "Secured investment"
      0.5 5.0/5 "Blown Away!"
      Compared to other banks SBI offering good interest rate on fixed deposit, they offered me 7.95% of interest. I have the amount of Rs. 2.4 lakhs for the tenure of three years. After the maturity period I got the amount around 2.9 lakhs. I am very much fine with that.
      Was this review helpful? 4
      , hyderabad
      Reviewed on May 24, 2017
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    Fixed Deposit versus Debt Mutual Fund is Rated as "Excellent!" by 1757 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    Fixed Deposit BYTES FROM OUR KITCHEN

    If you have a sizeable amount of money saved up and your primary investment goals are:

    • To invest in a low risk, non-volatile, and safe avenue.
    • To see returns within 5 years.
    • To see at least an 8% - 9% rate of returns.

    Then you have two widely popular investment options open to you – Fixed Deposits (FDs) and Debt Mutual Funds (Debt Mfs). These are both investments that meet the above criteria, and have their own features which distinguish themselves from each other. The differences in the way these two investments work can be seen as advantages or disadvantages depending on the type of investor you are.

    Which is the better investment option? Fixed deposit or debt mutual fund?

    To answer this question, one must consider the following points, and evaluate the type of investor he or she is:

    1. Safety of Capital invested.

      • Fixed deposits:
        • Have a credit rating system (as shown in the table below) that classifies and segregates investments based on overall safety of the initial capital invested.
        • The classification and rating system takes into account various factors like commodities and securities or avenues being invested in, the duration, the current market status, its volatility, etc. and gives you a real picture of how your investment can be expected to perform and how safe your investment is.
        • Are guaranteed by the government up to the extent of Rs.1,00,000.
        • Rating

          Typically issued by:

          Safety Level

          "Sovereign"

          The Government of India.

          Highest – no investment is safer than a "sovereign" investment.

          "AAA"

          Banks, large private companies and PSUs.

          Very high – there is little likelihood that your investment will do badly.

          "AA"

          Private companies.

          High – these are tried and tested investments and consistently perform well.

          "BBB"

          Private companies.

          Below average – you stand a very realistic chance of losing your capital.

          "BB", "B", "C" and lower

          Private companies.

          Poor – you will almost definitely lose your invested capital and have probably fallen victim to empty promises of huge returns.

      • Debt Mutual Funds:
        • Do not have a rating system, but the safety of the investment is gauged on the investment portfolio. Approximate investment safety levels are considered.
        • Involve a lot of diligent analysis simply to determine the safety of the investment.
        • Are not guaranteed by any authority to any extent.

        If you’re the kind of investor who has a high risk appetite and can afford to wager your savings – for a potentially huge benefit – but against staggering odds in an unstable financial market that’s littered with scams, then try your hand at debt mutual funds. You might get lucky.

        If you’re the kind of investor who falls in the majority category of those who wish to take a highly informed decision to invest hard earned capital in an established avenue of investment, which has a safety rating and is guaranteed up to Rs.1,00,000 – invest in fixed deposits.

    2. Premature withdrawal from investment.

      • Fixed Deposits:
        • Do not allow withdrawals before maturity. If a withdrawal is necessary, you will have to break your FD.
        • Few banks allow for partial withdrawal (or partial breaking), but in most cases the FD will have to be entirely broken.
        • Breaking a fixed deposit results in lower rate of interest and payment of penalty.
        • Penalties range from 0-15% of the initial invested amount.

      • Debit Mutual Funds:
        • Any amount can be withdrawn from the debit mutual fund account.
        • Amounts can be withdrawn at any time, and the mutual fund continues to function on the remaining amount.
        • There is no loss of interest rate.
        • Penalties are charged in the form of exit load, ranging from 0.25% - 1% and only applicable for periods less than one year.

        If you feel that you will need to break your investment before it reaches maturity and liquefy funds at short notice, then invest in debt mutual funds. But bear in mind that you will never receive the full benefit from any form of investment if you habitually break investments.

        If your investment pattern involves allowing all your well-planned and premeditated investments to fully reach maturity – and make full use of the huge maturity benefits – then invest in fixed deposits. Once an investment has been made, it is assumed that enough precautions and measures have been taken to allow for full returns.

        Keep in mind that any investment, if withdrawn halfway through, will never pay out as much as you had hoped.

    3. Rates of Returns on Investment.

      • Fixed Deposits:
        • Operate on the model of a fixed interest rate that’s communicated before you invest.
        • Current interest rates are around 8% - 9% (for investments > 1 year). This does not change due even in financial crises or volatility.
        • Enables financial planning.
        • Guaranteed return on investment.
        • Allows for calculation of an accurate amount of money that can be expected as total return on investment.

      • Debt Mutual Funds:
        • No fixed pre-communicated rate of interest.
        • Rate of interest must be guesses at based on previous fund performance and investment portfolio.
        • No guaranteed returns on investment.
        • Rate of returns are subject to market volatility and fluctuations in interest rates.

        If you are the type of investor who no desire to know what the end result of the investment will be, or wishes to take the chance at perhaps earning more due to fluctuations in the market which could raise the rate of returns – then invest in debt mutual funds. These funds do not earn interest, but earn dividends which could go higher or lower than you anticipate. Historical performance data, however, does not support the notion that returns will be high.

        If your idea of investment is to have full knowledge and awareness of exactly how much you’re investing, and how much you expect to receive as profitable returns, then invest in fixed deposits. These will give you a real picture of what to expect, and when to expect it. It also facilitates better financial planning, as you will already know how much the maturity amount is and how much you’ll be earning at the end of the term.

    4. Tax Liability.

    5. To understand the different taxes that apply on these investments, it’s important to understand the kind of return on investment they offer. Fixed deposits offer you return on investment in the form of interest, and Debt Mutual Funds offer return on investment in the form of capital appreciation or dividend. These two heads of income are taxed differently.

      • Fixed Deposits:
        • Attract a high rate of tax. Up to 30% depending on your personal tax rate.
        • Tax is applicable even on accrued interest which hasn’t been received yet.
        • Eventual income that compounds is lesser than in the case of non-taxed dividend income.

      • Debt Mutual Funds:
        • Attract the same rate of tax as FDs during the first year.
        • Taxed at a lower rate than FDs between the first year and third year.
        • Tax free from third year onwards.

        The reason that capital gains and dividend are taxed at a lower rate than interest income is because it is unsecured and a certain element of risk exists – bringing with it ambiguity about whether the investment will yield a profit or not. This risk is balanced by lower taxation, but leaves the investor open to the possibility of losing his investment. Interest income is taxed because it is a definite source of income which has been promised to the investor and has been secured up to Rs.1,00,000. A little taxation is a small price to pay for an investment that will almost certainly yield a profit and returns.

        If your investment strategy aims at saving on a little tax at the cost of exposing yourself to risk, invest in debt mutual funds.

        If your investment strategy aims at secured and guaranteed returns on investment from a high rated scheme, invest in fixed deposits.

    Overall, it should be noted that fixed deposits are the investment of choice for the majority of people who have investable amounts of savings, as it is a safer and more secure investment where funds are locked until they mature. It is ideal for those looking to park their funds and earn a decent amount of interest and benefits. Economic fluctuations do not affect the rate at which interest will accrue, as it is decided beforehand.

    Debt mutual funds, on the other hand, are investments which are less secure and can fail due to multiple reasons not limited to fluctuations in the economy. These investments are for those who can afford the risk in order to enjoy the slightly higher reward (when compared to fixed deposits). The primary advantages here are that you can liquefy your investment fast and at minimal cost, and can save on tax – at the cost of a risky investment platform.

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