Invest in fixed deposits and ensure secure financial growth with competitive rates and special tenors.
Get up to 9.40% p.a. interest, inclusive of additional benefit of 0.50% p.a. for senior citizens and 0.10% p.a. for women
Fixed Deposits (FDs) can help you save for short-term goals or build a long-term financial cushion. You have the flexibility of choosing from different types of FDs, such as cumulative and non-cumulative, allowing you to align your investment with your financial goals.
FDs provide a reliable way to grow your wealth steadily, ensuring financial stability and peace of mind. Here’s a quick overview of these instruments:
Meaning |
A savings and investment tool that allows you to make a one-time lump sum deposit for a fixed tenor at a specified interest rate for assured returns |
Issuers |
Financial institutions including banks and NBFCs |
Methods to Open |
Can be booked online and offline |
Types of FDs |
|
Certain FDs also permit premature withdrawals, subject to a penalty amount. This gives you access to liquidity to handle unforeseen financial needs. You also get flexible payout options to receive the entire amount at maturity or regular intervals. You could opt for a yearly, half-yearly, quarterly, or monthly interest payout plan.
Here are the various types of fixed deposit options that Non-resident Indians (NRIs) can invest in:
Non-resident External (NRE) Fixed Deposits
These FDs give NRIs the flexibility to invest their foreign earnings in India. The funds deposited in NRE FDs are automatically converted into Indian currency. The interest earned and the principal amount are fully repatriable and tax-free. This means, the funds can be transferred back to the foreign country. However, fluctuations in currency rates may affect your investment.
Non-resident Ordinary (NRO) Fixed Deposits
NRO FDs are savings tools that allow NRIs to invest their income earned in India, this includes income from rent and pension. The interest earned from such FDs is taxable. Individuals can also repatriate the principal and interest amount up to a certain limit. These FDs come with flexible tenor options and they can be held jointly with other Indian residents or NRIs.
Foreign Currency Non-resident (FCNR) Fixed Deposits
FCNR FDs offer a safe and convenient way for NRIs to save in foreign currency while earning assured returns. The principal and interest earned are tax-exempt in these FDs. However, banks and NBFCs may accept only select currencies, such as US Dollar, Pounds, Sterling, Yen, or Euros. Additionally, the maturity amount is repatriable in the same currency.
Here are some factors to consider when browsing the various types of fixed deposits:
Interest Rates
Compare interest rates offered on different types of fixed deposits by financial institutions to ensure maximum returns. If you’re a senior citizen or a women depositor, certain banks and NBFCs may offer preferential rates.
Premature Withdrawal Clause
Check the premature withdrawal policy before investing to ensure you have access to liquidity in case of emergencies. In this case, you could opt for callable FDs since they allow premature withdrawal.
Loan Facility
Check whether the bank or NBFC offers a loan against fixed deposit facility since it could come in handy when you need access to credit to fulfil payments.
Credibility of the Financial Institution
Assess the credibility of the bank or NBFC as per the ratings assigned by agencies like CRISIL and ICRA. These credit ratings signify the safety of the deposit and the consistency of the financial institution payment history.
Tax Exemptions and Tenors
Opt for tax-saver FDs offered by banks to lower your tax liability. However, keep in mind that there is a mandatory 5-year lock-in period. Invest in these FDs if you don’t anticipate an immediate need for funds.
It is crucial to evaluate the rates offered by different banks and NBFCs to ensure you get the best returns. Refer to the following table to know the maximum interest rates that some banks and NBFCs offer in India:
Financial Institution |
Rates for Regular Citizens (in p.a.) |
Rates for Senior Citizens (in p.a.) |
Bajaj Finance Limited |
8.40% |
8.65% |
Mahindra Finance Limited |
8.10% |
8.35% |
AU Small Finance Bank |
8.00% |
8.50% |
PNB Housing Finance Limited |
7.75% |
7.95% |
YES BANK |
8.00% |
8.50% |
Ujjivan Small Finance Bank |
8.25% |
8.75% |
Shriram Finance Limited |
8.47% |
8.97% |
Axis Bank |
7.20% |
7.70% |
HDFC Bank |
7.40% |
7.90% |
Note: The above cumulative FD rates are subject to change at the bank or NBFC’s discretion. These rates are as of 6th August 2024.
Check Monthly Interest Rates on Your Fixed Deposits |
||
The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.
Frequently Asked Questions
What is a tenor in FD?
Tenor refers to the length of time during which your invested amount earns interest in an FD account. Most banks and NBFCs offer a maximum tenor of up to 10 years.
Which FD has the highest return?
Cumulative FDs generally offer higher returns since the interest earned is compounded and added to the principal amount throughout the tenor. Individuals aged over 60 years may benefit from additional rates since senior citizen FDs are offered at higher rates than regular FDs.
Which type of account is a fixed deposit?
These are savings tools that generally offer interest rates than savings accounts. You invest funds for a fixed tenor at a predetermined rate.
Which is best FD or TD?
Fixed Deposits (FDs) and Term Deposits (TDs) are essentially the same, both offering low-risk savings options with fixed interest rates. However, the term 'FD' is more commonly used in India, while 'TD' is often used abroad.
Explore FDs From Our Partners
