What is Bank FD?

A Bank FD is an investment scheme provided by both banks and non-banking financing companies. Bank FDs offer higher returns on the invested amount as compared to the regular savings account. The investment period for Bank FDs is either short-term or long-term depending on the consumer’s investment portfolio. The Bank FD interest rates vary from one bank/organisation to another.

Various Bank FDs in India

FD is a popular source of investment in India. Hence, you can find a lot of leading banks and non-banking financial companies offering FD at attractive interest rates. However, if you compare the FD rates offered by the different banks in India, you will find that Finserv MARKETS offers one of the highest interest rates on fixed deposits in the country and even provides an extra interest rate of 0.25% for senior citizens and 0.10% extra for online applicants.

Besides, Finserv MARKETS, you can also book an FD at many nationalized public sector and private sector banks. These banks also offer attractive interest rates with guaranteed returns. A few of the banks best known for their great Fixed Deposits offerings are mentioned below with their latest rate of interest:

  • SBI FD rate of interest: 2.90% – 5.40% (Tenure - 7 days to 10 years)
  • Axis Bank FD Rates: 2.50% – 5.75% (Tenure - 7 days to 10 years)
  • HDFC FD rate of interest: 2.50% – 5.50% (Tenure - 7 days to 10 years)
  • ICICI Bank FD rates: 2.50% – 5.50% (Tenure - 7 days to 10 years)
  • Bank of Baroda FD rates: 2.80% – 5.25% (Tenure - 7 days to 10 years)
  • Bank of India interest rate: 2.80% – 5.25% (Tenure - 7 days to 10 years)

The above-mentioned interest rates are updated as on 1st April 2021

You can also calculate the FD interest you stand to get by using the Bank FD Calculator at Finserv MARKETS.

Let’s look at the different FD interest rates offered by the top leading banks in India. 

Banks

FD Interest Rate

Senior Citizen Interest Rate

Tenure

Bajaj Finance

6.15%-7.00%

6.40%-7.25%

12-60 months

PNB Housing Finance

5.90%-6.70%

6.15%-6.95%

12-120 months

HDFC

5.75%-6.25%

6.00%-6.50%

33-99 months

SBI

2.90%-5.40%

3.40%-6.20%

7 days-10 years

Axis Bank

2.50%-5.76%

2.50%-6.25%

7 days-10 years

IDFC First Bank

2.75% - 6.00%

3.25% - 6.50%

7 days-10 years

Why should you opt for a Bajaj Finance FD?

  • Attractive rate of interest:

Your first criteria to choose a Bank FD or any Fixed Deposit scheme should be to compare and choose schemes with higher interest rates. This is where Bajaj Finance Fixed Deposit wins big as it offers a lucrative interest rate of 7.20%.

  • Excellent credit rating:

Bajaj Finance Ltd, the lending and investment arm of Bajaj Finserv, has been accredited with ICRA's MAAA (stable) rating and Crisil's FAAA/Stable rating. These ratings indicate the lowest investment risk and highest safety for the investors.

  • Safe investment option:

It is one of the safest investment options as the returns are assured and not based on the market fluctuations. So, if you are averse to taking risks in the market that is intrinsically volatile, Bajaj Finance FD is a smart choice for you.

  • Minimal deposit:

You do not have to be rich to be able to invest, just be financially prudent. Bajaj Finance FD allows you to invest an amount as low as Rs. 25,000 into an FD scheme. With this minimum deposit amount, you can start investing any time, without having to wait to accumulate a larger corpus.

  • Higher interest rate to senior citizens:

Senior citizen Fixed Deposits get an interest rate that is 0.25% and above the existing interest rate.

  • Flexible tenure:

Bajaj Finance offers you an advantage of choosing from the flexible tenor of 12 to 60 months. So, you do not have to lock down your money for a long time to be able to enjoy returns. You can choose the longevity of the tenure depending on your financial priorities and requirements.

  • Flexible payouts:

Giving you another way to enjoy your returns as and when you like, Bajaj Finance Fixed Deposit offers both cumulative deposits and non-cumulative deposits with yearly payouts option. This means that you can choose to get the full interest earned at maturity at intervals of every month, quarter, half-year or year by choosing a non-cumulative FD.

  • Online application process:

Bajaj Finance FD offers you a swift, hassle-free online process to get started with your FD scheme. Just submit the online application form and a Bajaj Finance representative will get in touch with you for all the additional information and queries like the documentations required. All you need to do is to submit the application form, a photograph, and your KYC documents.

  • Auto renewal:

Bajaj Finance Fixed Deposit offers its investors an auto-renewal option under which the company will automatically renew your deposits for the same period of time and the same interest rate upon maturity. Bajaj Finance Fixed Deposit offers renewal benefits in the form of an additional 0.25% of interest.

FAQs

  • ✔️What is the interest rate on Bank FD for senior citizens?

    All the banks in India offer a comparatively higher interest rate on senior citizens' Fixed Deposits. Currently, a lot of banks offer a rate of interest ranging from 3.50% – 9.25% on senior citizens FDs. Bajaj Finance Fixed Deposit also provides a higher rate of interest of 7.25% for senior citizens.

  • ✔️Which bank FD is best?

    A lot of banks in India offer an attractive rate of interest of Fixed Deposit schemes ranging from 5-7%. Bajaj Finance Fixed Deposit also provides a high rate of interest of 7.2%. 

    Here are some of the best Fixed Deposit schemes:

    Company Name

    Tenure

    Interest Rate

    Housing and Urban Development Corp Ltd

    1 year

    9%

    Housing and Urban Development Corp Ltd

    2-3 years

    9.15%

    Kerala Transport Development Finance Corporation Ltd

    1 year

    8.25%

    Mahindra Finance

    3 years

    7.80%

    Shriram City Union Finance

    1 year

    7.50%

  • ✔️What is the minimum amount required to start a bank FD?

    You can start an FD at Finserv MARKETS with as low as ₹25,000.

  • ✔️Is the interest earned on a bank FDs taxed?

    Yes, interest earned on Fixed Deposits is classified as 'income from other sources' and is subject to income tax. Hence, the income is added to the total income of the taxpayer, and the tax liability is as per the income tax slab.

  • ✔️Is there a penalty if the bank FD is prematurely withdrawn?

    Yes, in case of premature withdrawal, the investor has to pay a certain amount as a penalty to the bank. The amount charged usually ranges from 0.50 % to 1.00 % of the interest.

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