It is a fact that investing in different fixed deposits has always been a preferred choice for people. The primary reason behind this is that FD is a safe investment option with the lowered risk involved. On the other hand, the returns on the investment are guaranteed. Besides, this also offers different interest payment options, consistent interest rates, the special interest rates of women and senior citizens, and more. However, before choosing the bank to open your fixed deposit account, consider checking the current fixed deposit interest rates.
What do you mean by a fixed deposit?
Speaking about fixed deposits, these are one type of financial instrument offered by NBFCs, post offices, and banks where you can deposit your money and earn interest for a fixed period of time. The tenure of your fixed deposit can range from 7 days to 20 years. Here, you will be offered a decent interest rate, and the returns are ascended compared to saving accounts.
Different types of fixed deposit that you should know about
1. Normal fixed deposit
Here you will deposit your money for a fixed period. In the case of FD’s tenure, it can go from 7 days to 10 years. Some banks offer 20 years of tenure. Compared to a regular saving account, there the fixed deposit interest rates will be higher.
2. Senior citizen fixed deposit
This type of FD is for people above 60 years of age. With flexible tenure, the senior citizen can also enjoy special rates.
3. Tax-saving fixed deposit
The best thing about this FD is there will be a tax exemption on your principal deposit amount. It comes with a 5-year lock-in period, and you will not be able to withdraw the amount under that period. This FD lets you a one-time deposit.
4. Non-cumulative fixed deposit
Here the interest rate will be paid out annually, quarterly, half-yearly, or monthly based on your choice. This is quite beneficial for the pensioners who want a regular source of income.
5. Cumulative fixed deposit
When you have this FD account, the interest will be compounded quarterly or yearly, and you will get the whole amount at the maturity time. Cumulative FD can help you in saving more money.
6. Flexi fixed deposit
Here, your FD account will be linked to your saving bank account, and your money can move between saving and FD account.
Fixed deposit calculator
You might be thinking about what your returns will be if you are investing in an FD. To know that, you can use the FD interest rates calculator. Speaking about such calculators, they work by utilizing the information related to FD, for example, interest rate, investment period, the principal amount, and more. With this, you can easily choose the best bank or other FD service providers in your area. You will get an idea of the interest you can earn by choosing a particular FD.
For example, if you are investing Rs. 25,000 for years and the interest rate is 6.5 percent, then to find out the closing interest rate, you can use the FD interest rates calculator. As per the result, you can get Rs. 30,335 of maturity amount and the interest would be Rs. 5,335. This is for cumulative or re-investment FD type.
How to use the FD calculator?
FD calculators are designed to calculate nearly accurate maturity amounts and interest. To get the data, you need to input three types of data. These are:
1. Deposit amount
2. Deposit tenure
3. Deposit interest rate
After putting these, you need to press the calculate button to get the result.
Post office fixed interest rates
Before exploring the interest rates offered by post office, let’s know about fixed deposit rates in post office.
Speaking about post office fixed deposit, it is also known as “Post Office Time Deposit Account.” The best thing about this is it is regulated by the Government of India. With this, you can keep your money with any post office across the country. The scheme is very affordable and quite popular among people. Besides, you can create an FD with a 5-year lock-in period to qualify as a tax-saving FD. The fixed deposit rates in the post office are generally regulated and updated by the Government. The updated FD interest rates for the post office are:
For 1 year lock-in period, the interest rate will be 5.50 percent.
You can get 5.50 percent on your fixed deposit if the tenure is 2 and 3years.
However, you enjoy a 6.70 percent of interest rate if your FD tenure is 5 years.
Do not miss below posts –
Top banks fixed deposit interest rates
1. ICICI FD interest rates
The FD at ICICI bank comes with a duration of 7 days to 10 years. On the other hand, you can earn an attractive interest rate on your FD made for the 5-year Tax Saver FD scheme. The maximum rate of interest the bank can offer is 6.50 percent which is quite good.
2. HDFC fixed deposit interest rates
With an HDFC FD account, you can go for an FD for a maximum period of up to 10 years. It also offers an FD for 7 days to 14 days. On the other hand, the interest rate can vary from 3.50 percent to 6.25 percent based on your FD tenure. Check out all the fixed deposit interest rates before applying.
3. SBI fixed deposit interest rate
Recently, SBI has revised the fixed deposit interest rates in SBI. As per the latest notification, the rate can range from 4.50 percent to 6 percent for the regular FDs. However, if you are a senior citizen, you can get an additional 0.50 percent interest. Most people prefer to choose SBI when it comes to open a fixed deposit account.
4. Axis bank fixed deposit interest rate
The best part of Axis bank’s FD is creating an FD account using its net banking feature. Just visit the official website, and you can easily open an FD. The minimum amount required to open an FD with Axis bank is Rs. 5000. On the other hand, the interest rate can range from 3.50 percent to 6.50 percent. The senior citizens will enjoy an additional 0.50 percent interest.
5. Canara bank fixed deposit interest rate
With Canara Bank, you can open your FD account for 7 days to 10 years. The minimum FD amount is Rs. 1000. Besides, the interest rates range from 4.25 percent to 6.35 percent based on the FD account tenure.
6. Yes, Bank fixed deposit interest rates
Yes, Bank offers an interest rate of 7.50% on the fixed deposits, and senior citizens can earn up to 8 percent of FD interest. There is also a special offer to get a maximum of 7.50% interest per annum interest in less than 3 years. You can visit the official website of the bank to check their FD interest rates.
Some benefits of fixed deposits
» This is a safe investment option with guaranteed returns.
» FDs have backed with an insurance of Rs. 5 lakhs.
» It promotes saving habits in you.
» You can enjoy a better tax-saving option.
» Senior citizens can enjoy higher FD.
» The interest payout feature is quite flexible.
» You can avail of credit cards and loans against your FDs.
No Commment to show.