A Detailed Guide About FD Interest Rates In India
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Interest rates are one of the most important financial parameters when it comes to making decisions about a bank or a financial institution. Interest rates are the amount of interest that a bank or a financial institution would charge its customers for using their money over a certain period.
Over the years, interest rates have been one of the most important financial parameters that have helped shape the financial markets in India.
What are FD Interest Rates in Brief?
A fixed deposit (FD) is a financial instrument provided by banks which gives investors a higher rate of interest than what is given for regular savings accounts, until the maturity date. The investor cannot access the money during this period without being charged a penalty.
FD Interest Rates in India by Different Banks
Fixed deposit interest rates in India vary depending on the type of bank and the tenure of the deposit. For example, the State Bank of India offers an interest rate of 7.5% for a one-year fixed deposit, while HDFC Bank offers an interest rate of 8.5% for the same tenure.
The other factor to consider is the type of account you open. For example, if you open a savings account with HDFC Bank, you will earn an interest rate of 3.5% per annum on your balance. However, if you open a fixed deposit account with the same bank, you can earn an interest rate of up to 8.5% per annum.
A fixed deposit (FD) is a financial instrument provided by banks in India that offers customers the ability to earn a higher rate of interest than what is offered for a regular savings account. FDs have a specific maturity date and cannot be withdrawn before that date without being subject to penalties.
The following is a table of fixed deposit rates offered by banks in India:
|
Bank Name |
FD Interest Rate for Senior Citizens |
FD Interest Rate for General Citizens |
|
HDFC |
3.25-6.50% |
2.75-5.75% |
|
SBI |
3.40-6.30% |
2.90-5.90% |
|
ICICI |
3.25-6.20% |
2.50-5.50% |
|
Axis Bank |
2.50-6.50% |
2.50-5.75% |
|
Canara Bank |
2.90-6.25% |
2.90-5.75% |
|
Kotak Mahindra Bank |
3.0-6.40% |
2.50-5.90% |
|
Punjab National Bank |
3.50-6.10% |
3.0-5.60% |
|
IDFC |
4.0-7.0% |
3.50-6.50% |
|
Bank of Baroda |
3.30-6.35% |
2.80-5.35% |
|
Bank of India |
3.35-5.95% |
2.85-5.20% |
Data as of August 2022
Types of Fixed Deposits
A fixed deposit (FD) is a financial instrument provided by banks and NBFCs which offers guaranteed returns. The most common type of FD is the regular FD where the interest is paid out at maturity. However, other types of FDs offer different features and benefits.
- Regular Fixed Deposit: This is the most common type of FD where the interest is paid out at maturity. The investment period can range from 7 days to 10 years.
- Cumulative Fixed Deposit: In this type of FD, the interest is not paid out at maturity but is reinvested along with the principal amount.
- Bank Fixed Deposits: These are offered by banks. Both types of fixed deposits offer similar benefits, but there are some key differences between them. Bank fixed deposits are generally considered to be safer as they are backed by the Reserve Bank of India (RBI).
- Company Fixed Deposits: These are offered by non-banking financial companies (NBFCs).
Conclusion
To get the best return on your investment, it's important to compare interest rates from different providers before opening an account. Keep in mind that fixed deposit rates can change over time, so it's worth checking back periodically to make sure you're still getting the best deal.
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