Finding the best Fixed Deposit (FD) scheme is very important to get the best returns out of your investment. To choose the right FD scheme, you need to consider certain factors before applying for a term deposit. It is wise to consider factors like interest rate paid, credibility of the bank or financial institution offering the FD, total yield, interest compounding frequency, etc. In india, FDs are offered by both banks and Non-Banking Financial Companies (NBFCs). NBFCs or corporate company FDs usually pay a higher rate of interest on time deposits when compared to banks.
It is necessary to do some research before you put your hard-earned money in a fixed deposit scheme. In this page, you can read about how you can choose the best FD scheme.
The following are the factors to consider before applying for an FD:
Bank fixed deposits, one of the most sought-after savings schemes for millions of investors in India, offer higher rates of interest than savings bank accounts. The rates of interests for fixed deposits vary depending on the bank. Bank fixed deposits are regulated by RBI, which guarantees up to Rs.1 lakh against insolvency of the bank. Bank fixed deposits typically offer lower interest rates compared to corporate fixed deposits but provide assured returns.
The table below shows high interest rates offered by some banks on fixed deposits:
|Name of the bank||Duration||Rate of interest|
|Bandhan Bank||1 year to less than 2 years||7.15%|
|RBL Bank||1 year to less than 2 years||7.10%|
|Repco Bank||1 year to less than 2 years||7.25%|
|IDFC Bank||1 year and 1 day||7.5%|
|Lakshmi Vilas Bank||725 days||7.25%|
|Company||Rating||Period||Rate of Interest|
|Bajaj Finance Ltd||FAAA by CRISIL, MAAA by ICRA||3 years and above||7.85%|
|DHFL Aashray Deposit Scheme||AAA by CARE and FAAA by BWR||1 year||7.70%|
|GRUH Finance Ltd||FAAA by CRISIL, MAAA by ICRA||1 year||7.25%|
|HDFC Premium Deposits||FAAA by CRISIL||15 months||7.15%|
Yes, you will need to open a bank account with the lender to open an FD account with them.
Yes, most banks in India offer nomination facilities on opening an FD account.
Yes, an NRI can open an FD account in their name in India. They can open an NRE or an NRO account based on their preference for the currency in which they would prefer to deposit the amount.
No, you cannot avail loan against fixed deposit facility if the account is in the name of a minor. Once the minor turns 18 years old, he/she can then avail the facility.
No TDS is deducted for interest earned up to Rs.10,000. Submit Form 15G or 15H at the time of opening an FD account if your total income is lower than the taxable limit.
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