People have different preferences when it comes to investments. However, most people favor fixed deposits when they wish to park their money in a safe way for a fixed period of time. This traditional saving instrument is a popular choice, especially with the ones who have a low-risk appetite.
There is a lot of difference in the rate of interest offered by a savings bank account and a fixed deposit (FD) account. If you have any surplus amount kept in your savings accounts, you can think of shifting it to an FD. At the end of the tenure, you can withdraw the amount or reinvest the principal amount or withdraw the interest and reinvest the principal amount. All the commercial banks and NBFCs in India offer fixed deposit accounts to their customers. You can easily open an account by submitting the important documents required for fixed deposit. The FD interest rates for senior citizens are a little higher than regular customers. Let us take a look at the FD interest rates offered by major banks and NBFCs in India:
|Name of the Bank||Interest Rate% per year for Regular Customers|
|HDFC Bank||3.00% to 6.35%|
|IDFC Bank||3.00% to 6.50%|
|State Bank of India||3.40% to 6.30%|
|Punjab National Bank||3.40% to 5.75%|
|Canara Bank||2.90% to 6.00%|
|Bank of India||3.35% to 5.55%|
|Axis Bank||2.50% to 6.50%|
Apart from traditional banks, there are some NBFCs also that allow their customers to open fixed deposits. In most cases, it is seen that financial institutions and private sector banks offer higher interest rates, as compared to banks from the public sector. In case you are planning to invest in an NBFC fixed deposit, it is highly recommended that you check its CRISIL rating.
|Name of the NBFC||Interest Rate% per year for Regular Customers|
|Bajaj Finance Limited||5.60% to 7.10%|
|LIC Housing Finance||5.15% to 6.00%|
|Sundaram Finance||5.50% to 5.80%|
Disclaimer: The aforementioned Banks and NBFC FD interest rates are on Rs. 1 crore, and are valid as of 01-Mar-2022 and may be subject to change.
Since a fixed deposit does not depend on the market, there is no fear of fluctuations and volatility. You receive a constant guarantee on the rate of interest and the maturity amount is fixed. Take your time to decide which NBFC or banks are offering the best interest rates and services, and then make a decision.