Fixed Deposits are one of the most widely procured investment options by customers. It is also relatively safe and reliable especially for short term gains. Reasons for its popularity include
However, despite the advantages, individuals must note that although Fixed Deposits have tax benefits, the interest charged on them is taxable. Individuals cannot withdraw prior to maturity either as this will result in a penalty. Another disadvantage is that, even if the market is in good shape, interest rates will not change.
In order to open a Fixed Deposit account, individuals will need to provide the following -
Other documents, if necessary, will be mentioned by the bank authorities.
Almost every other bank offers the option to open a Fixed Deposit account, however the rate of interest applicable is also solely decided by the bank in question. Some banks that offer attractive rates of interest with their fixed deposits are given below.
Formerly known as The Ratnakar Bank limited is a fast growing scheduled commercial bank which currently offers the highest rate of interest on Fixed Deposits in the country. Established in 1943, this bank offers a number of products and services.
Based on the tenure, the interest rate on Fixed Deposits vary. For a minimum tenure of 2 years, the annualised rate of interest is 7.98% and for a tenure of 3 years, the rate is 8.08%. Senior Citizens have the option of procuring 8.62% interest by opting for the senior citizens Fixed Deposit scheme.
KTDFC or Kerala Transport Development Finance Corporation Ltd. offers a general interest of 8.84%. However, if the tenure is five years then the cumulative yearly amount is 10.17% and senior citizens can procure an interest amount of 10.55%.
Mahindra & Mahindra Financial Services Limited or MMFSL in short is one the major rural Non-Banking Financial Companies (NBFC) in India and provides a number of products and services such as bonds, stocks, loans, shares and so on. Fixed Deposit schemes are offered by this company with an attractive rate of interest of 8.78% for a tenure of 5 years. Senior Citizens can avail the same for an interest rate of 10.35%.
DHFL or Diwan Housing Finance Corporation was established in 1984 with the main goal of providing affordable home loans to middle income and lower income groups. Today, however, they have diversified into providing a number of products and services with Fixed Deposits being one of their popular offerings due to the competitive interest rates offered. There are different types of Fixed Deposit schemes provided -
Citi Union Bank is another top financial institution that offers Fixed Deposits. The interest rates offered is generally is 6.85% for a deposit mount under Rs.1 crore and for a tenure of a year. However, senior citizens who procure a Fixed Deposit for a year can avail an interest of 7.10%.
Karnataka Bank is a renowned financial institution headquartered in Mangaluru in Karnataka and was established in 1924. The banks provides a range of financial products and services such as loans, Recurring Deposits, Credit Cards, Debit Cards and so on. The general rate of interest on Fixed Deposit schemes is 6.75% for a tenure of a year to two years. However, senior citizens who procure Fixed Deposits for the same tenure can avail an interest of 7.25%.
One of the largest private sector banks in India, Axis Bank was established in the year 1990 as UTI Bank and is headquartered in Mumbai. A number of products and services are offered including Fixed Deposits. The general interest rate offered for a deposit under Rs. 1 crore, above Rs.15 lakhs and a tenure of year and above is 7.00%. However, senior citizens can procure the same for 7.50%.
Corporation Bank is a public sector bank headquartered in the coastal city of Mangalore in Karnataka. It was established in the year 1906 and offers a number of products and services. Fixed Deposits are one of its popular offerings. For a tenure of 1-3 years and over and deposit of less than Rs.1 crore, interest rate of 7.00% can be procured. Senior citizens can avail an addition 0.50% interest rate.
ICICI Bank is a multinational financial company that has its headquarters in Mumbai and offers numerous products such as Cards, Loans, Deposits and so on. For a tenure between 390 days to 2 years and deposit amount less than Rs.1 crore crore with premature withdrawal facility, the interest rate applicable is 7.00%. Senior citizens can avail 7.5% interest for that same tenure.
Banks that provides FD Interest Rates above 7% are listed below with interest rates against the tenure:
|Name of the Bank||Interest Rate||Conditions|
|RBL Bank||7.98%||Tenure of 2 years|
|RBL Bank||8.08%||Tenure of 3 years|
|RBL Bank||8.62%||Senior Citizens|
|KTFC||10.17%||Tenure of 5 years|
|Mahindra & Mahindra Financial Services Limited||8.38%||Tenure of 5 years|
|Mahindra & Mahindra Financial Services Limited||10.35%||Tenure of 5 years and procured by Senior Citizens|
|DHFL||8.5% (Additional 0.25% for privileged customers||Aashray Deposit Plus for Individuals (dependent on tenure and minimum deposit amount)|
|DHFL||8.35% (Additional 0.25% for privileged customers)||Swayamsidha Deposit for women who procure deposit for a minimum of Rs. 10,000 and for a term of 18 months.|
|DHFL||8.5% (Additional 0.25% for privileged customers)||Wealth2Health Fixed Deposit (dependent on tenure and minimum deposit amount)|