New Delhi: Fixed Deposit (FD) schemes are considered to be one of the safest and secure investment options in India. FD schemes are lumpsum investments for a specific period of time with a bank. In a Fixed Deposit scheme, a depositor earns interest at a fixed rate which is set at the time of the account opening. The beneficiaries are given the option to choose to receive the interest earned either monthly, quarterly, half-yearly or annually as per their preference. Term Deposits are also called Fixed Deposits.
Fixed Deposit schemes are not related to the stock market and are best suited for those people who want to earn a fixed interest rate and do not want to take any risk. The interest rate on fixed deposits depends on the tenure.
Fixed Deposits are popular as the returns are guaranteed and there is no real risk of a capital loss. FDs offer a better rate of interest when compared to savings accounts. Several banks offer tax-saving FDs which help people to help to save taxes. When an FD Account is opened, the depositors are required to invest the specific amount of money for a predetermined period. The account holders should ensure that the money deposited is not withdrawn until the maturity of the deposit. The lenders offer several periods of investment that can range from 7 days to 10 years, depending on the investor’s preference.
- State Bank of India (SBI), India’s largest public sector bank, is offering interest at the rate of 6.5 percent to its regular citizens and 7 percent to senior citizens in its five-year FD scheme.
- The FD plans offered by HDFC Bank, the country’s largest private bank, ensures 7 per cent return to regular customers and 7.5 per cent return to senior citizens on five-year term deposits.
- ICICI Bank offers 7 per cent interest to its regular customers and 7.5 per cent interest to senior citizens for a five-year FD scheme.
- Federal Bank is also offering attractive interest rates to attract customers. This bank is offering interest at the rate of 7.1 per cent to regular customers and 7.6 per cent to senior citizens on fixed deposits of five years.
- Union Bank of India is giving 6.8 per cent and 7.4 per cent interest rate respectively to its regular and senior citizens on five-year Fixed Deposits.
- Bank of Baroda: This government bank is offering interest rates of 6.8 per cent and 7.4 per cent respectively to its regular and senior citizens on a five-year FD scheme.
Fixed Deposits (FDs) are a secure investment option in India, offering guaranteed returns and fixed interest rates. Leading banks like SBI, HDFC, ICICI, Federal Bank, and Union Bank offer competitive rates, varying by tenure and customer type (senior citizens often receive higher rates). Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
