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What is a Fixed Deposit?
Fixed deposit (FD) is one of the safest investment options through which people can earn relatively higher interest in comparison to a regular savings account. Interest is accumulated on the deposited amount over a fixed period of time. The interest rate depends on the type of lenders (public sector, private sector, or small finance banks). Senior citizens are usually offered higher interest rates. In the case of an emergency, you can easily liquidate your FD and get the funds.
The tenures in fixed deposit schemes are flexible. Investors can choose the tenure according to their convenience.
Once the amount has been deposited in at a specific interest rate, it remains unaffected by further changes in interest rates or market fluctuations. Thus, the returns on your deposit are assured.
With fixed deposits, there are several other benefits such as loan against FD. One can avail loans of up to 90 per cent of your deposit amount at very low interest rates. Investing in tax-saving fixed deposits will fetch tax deductions. FD also provides the option for regular income. One can get the interest sum credited as per the requirements on a monthly, quarterly, or annual basis.
Factors to consider before opening FD -
- Compare various FD interest rates of different banks that help you earn better interest.
- Review the credibility of the lender by examining the fixed deposit’s safety.
- Choose a bank that offers good customer service and a hassle-free process for opening an FD.
Latest Updates on Fixed Deposit
These schemes come with competitive rates for various tenures, for both general customers and senior citizens
Revised rates range from 3.50% to 8% for general citizens; senior citizens will receive returns of 8.50%
Lender offers 3.50% rate to general citizens on deposits with tenures ranging from seven to 45 days
In the event that the RBI decides to lower interest rates in December, this could be an opportune time for investors to lock in higher returns on fixed deposits
Indian households, Desai wrote, are still under-invested in equities. At cost, only 3 per cent of the household balance sheet is in equities, excluding equity holdings of founders.
The highest interest rate of 7.75% and 8.25% is for a tenure of 18 months
Comprehensive insights into ratings and returns offered by various players over different horizons
MobiKwik Fixed Deposits allows users to start investing with as little as Rs 1,000 and earn up to 9.5 per cent returns per annum without opening a new bank account, it said
Public sector banks are offering attractive fixed deposit interest rates, with senior citizens earning up to 7.95% for 400-day tenure. High deposit safety is driving its popularity, say analysts
Offer available at the bank's branches and digital channels (BOI Omni Neo App/ Internet Banking)
Some of the banks providing these rates include NorthEast Small Finance Bank, Unity Small Finance Bank, RBL Bank, YES Bank and Deutsche Bank
Senior citizens may invest in high-quality bonds, senior citizens savings schemes, and post office monthly income schemes
Deposits with 444-day tenure will earn 7.85 per cent interest per annum, while those opting for a 375-day term can enjoy a 7.75 per cent annual return
Myth of flagging deposit growth appears as just a statistical myth with credit growth outpacing deposit growth being tom-tommed as a deceleration in deposit growth, the research report said
A number of regulations applicable to NBFCs were reviewed and revised regulations were shared in the central bank's latest circular
SBI's one-year MCLR, which directly influences many loan types, has risen from 8.85% to 8.95%
Punjab National Bank's rates range from 3.5% to 7.25% for those under 60
Lender raises extra interest rate for deposits made by senior citizens and super senior citizens
It will offer 7.35% and 7.40% on fixed deposits below Rs 3 crore for 35 months and 55 months tenors
Most banks offer higher interest rates (usually 50 basis points) on their senior citizens' fixed deposits