Best Interest giving Banks On FDs
Hello Friends..
Most of the times we heard from elders that "I got benefit from my bank FD, My Bank FD helps me a lot, etc. Then the question arises in our mind that what is mean by FD and what are the benefits of FD?, etc. Today I am going to tell you about Bank FDs.
Are you interested in Interest Rates on FDs by Indian Banks. If yes, then I am here to give you information regarding FD interest rates.
In India, generally everyone invest their money in banks in the form of FDs. Because of its Advantages. It becomes a traditional investment way in our financial sector.
What is mean by FD?
Fixed Deposits is the Fill form of FD. Fixed Deposits is the Financial instrument provided by banks for money investment. This is safest option for our valuable money. Fixed deposit is a form of term deposit in which a fixed amount is deposited in bank for a fixed period and it is repayable at a future date, along with the interest earned. In a fixed deposit , the customer is not allow to perform any operation against the deposit made. As in the case of the demand deposit in short , the depositer has to forgo liquidity on the amount deposited and the bank is free to deploy the funds on loans and earns interest on it. So as the amount remains with the bank for the long period , the higher amount of interest is paid by the bank on fixed Deposit.
Features of FD :
Tenure:
In a fixed deposit, the amount is deposited in fixed terms in banks Eg. 1 year, 2Year, 5 years etc.
Fixed Rate Of Interest :
The amount deposited, interest is paid by bank at a specified rate as usually agreed between depositer and the bank at time of account opening.
Minimum Period for A Fixed Deposit is 7 Days :
Interest returns are depend on the time period. So more the time, more the interest returns.
Deposit Receipt :
Bank issues a receipt on the acceptance of deposited amount that contains the name of depositer, Principle amount , maturity amount, interest rate, maturity period, deposit date.
Renewal :
At the time of maturity, the principal and interest can be renewed for another period at a rate of current time.
Benefits Of Fixed Deposit :
Which Bank Has The Highest Interest Rates?
Now you are thinking about the Interest rates which are given on the Fixed Deposits by the banks. The Fixed Deposit Interest Rate is varying from bank to bank. It is not same at all the banks. interest rates are depends upon the Financial Management Strategies of that banks.
Lets see the report on the Interest Rates of major banks in India.
|
Bank |
Tenure |
Interest
Rates |
|
SBI |
7 days to 10 years |
5.75% to 6.85% |
|
ICICI Bank |
7 days to 10 years |
4% to 7.25% |
|
Punjab National Bank |
7 days to 10 years |
5.70% to 6.85% |
|
HDFC Bank |
7 days to 10 years |
3.5% to 7.40% |
|
Axis Bank |
7 days to 10 years |
3.5% to 7.25% |
|
Union Bank Of India |
7 days to 10 years |
5.0% to 6.85% |
There are other other Large Banks, Small Banks, and NBFCs which offers best interest rates on FDs. They are as follows.
|
Highest FD Rates in
India |
||
|
Bank / NBFC |
Interest Rates (For regular citizens) |
Tenure |
|
Muthoot Capital FD |
8% |
1 year |
|
Utkarsh Small Finance Bank |
6.75% |
Above 1 year |
|
Suryodaya Small Finance Bank |
6.75% |
Above 3 Years to less than 5 Years |
|
Jana Bank |
6.75% |
3 years 1 day – 5 years |
|
SBM Bank |
7.25% |
1 year to 1 year 1 month |
|
RBL Bank |
6.3% |
5 years |
|
YES Bank |
6% |
5 years – 10 years |
|
Bajaj Finserv |
6.75% |
3 years – 5 years |
|
DCB Bank |
5.95% |
3 years – 10 years |
|
IndusInd Bank |
7.25% |
1 year – 5 years |
(The above table are the top 10 FDs with the best FD rates on offer across banks and tenures for regular citizens. Interest rates updated on 21th Sep 2021)
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