If you are looking to invest your money in safe savings instruments, fixed deposits are always the best choice, say experts. Fixed deposits or FDs are secure fixed income instruments, which offer guaranteed returns. FD interest rates vary according to the tenure of the fixed deposit and across banks and companies.offer higher FD interest rates than banks’ but then, the risk with corporate fixed deposits is also higher than those on bank fixed deposits.
Fixed Deposits Meaning
In a fixed deposit account, money is deposited for a specific period, say 45 days, one year, five years or even ten years. Some fixed deposits come with a premature withdrawal facility while others require a compulsory lock-in period. The fixed deposit accounts which have a offer income tax benefit under Section 80 C of the Income Tax Act.
Fixed deposit interest rates: Which bank is best for fixed deposit?
FD interest rates vary according to tenors and banks. For example, on a one-year fixed deposit in SBI (State Bank of India) interest rate is fixed at 6.65 per cent on a fixed deposit below Rs. 1 crore. However, on the same tenure and amount, a fixed deposit with YES Bank fetches an interest rate of 7.1 per cent. It is tough to say which bank is the best for fixed deposit because fixed deposit rates vary.
Given below are fixed deposit interest rates of SBI, HDFC Bank, ICICI Bank and other top banks:
The following are the latest FD interest rates of 10 key banks on fixed deposits less than Rs. 1 crore:
Banks
Up to 1 year
Up to 3 year
Up to 5 year
SBI
6.65
6.7
6.7
HDFC Bank
6.85
7
7
ICICI Bank
6.6
7
7
PNB
6.6
6.75
6.25
Axis Bank
7.1
7
Kotak Mahindra Bank
7.25
7
6.5
YES Bank
7.1
7.1
7.1
Bank of Baroda
6.6
6.6
6.7
Allahabad Bank
6.6
6.5
6.5
IDBI Bank
6.75
6.7
6.75
In fact small finance banks like Equitas Small Finance Bank, Fincare Small finance Bank, Suyoday Bank, among others, offer higher FD interest rates than larger peers.
Post offices also offer fixed deposits, interest rates on which range from 6.6-7.4 per cent.
For more updates: Like us on Facebook and follow us on Twitter & Instagram
