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Even though the share of fixed deposits is falling, a majority of individuals still invest in it owing to its several features and associated benefits.
To begin with – the assured income aspect, special interest rates for senior citizens and flexible tenor are among the major benefits. Consequently, investors should opt for an FD plan that extends the best interest rates. They can further use a fixed deposit calculator to facilitate their selection process.
Best interest rates on fixed deposits
On a minimum deposit of Rs.25,000 investors can earn attractive returns on cumulative fixed deposits –
- For new customers and senior citizens
An annual rate of interest of 7.6% is offered to regular FD holders for a tenor ranging between 12 to 23 months. Conversely, for senior citizens, the applicable rate is 7.85%.
Likewise, for tenors between 24 months to 35 months, the applicable interest rate is 7.9%. Similarly, senior citizens would be eligible to avail up to 8.15%.
Additionally, for a tenor ranging between 3 to 5 years, regular fixed deposit holders would earn interest at the rate of 8.1%. Consequently, senior citizens would earn interests at the rate of 8.35%.
- For existing customers
Depending upon the tenor, the annual rate of interest that a minimum deposit of Rs.25,000 would attract is as follows –
In the case of tenor ranging between 12 to 23 months, FD holders would earn interest at the rate of 7.7%.
Similarly, a fixed deposit with a tenor between 24 to 35 months would accrue interest at the rate of 8%.
Further, those who have invested in fixed deposits with a tenor between 3 to 5 years; would generate earnings on their deposits at a rate of 8.2%.
Investors should also learn how the tenor of their FD affects their interest rates. They can use a fixed deposit calculator to gain a better insight into it.
Highest fixed deposit interest rates for NRIs
- For new customers and senior citizens
On a minimum deposit of Rs.25,000 cumulative fixed deposits of NRI would earn interests in these ways –
The deposits of new customers would accrue interest at the rate of 7.6% for a tenor ranging between 12 to 23 months. However, the deposits extended by senior citizens would accrue 7.85% for the same period.
Additionally, for a tenor between 24 to 35 months, new customers would earn returns at the rate of 7.9%. While for the same duration, senior citizens would accrue returns at a rate of 8.15%.
Similarly, new customers and senior citizens would earn returns at the rate of 8.1% and 8.35% for a tenor ranging between 3 years to 5 years.
- For existing customers
In the same manner, existing customers would accrue interests on a minimum deposit of Rs.25,000 at these rates –
- For a tenor between 12-23 months – 7.7% p.a.
- A tenor between 24-35 months – 8% p.a.
- For a tenor of 3 years – 8.2% p.a.
However, investors must look for the rate of interest that applies to their case and deposit type. Similarly, by comparing the rates investors would be able to identify which one is best for them between short-term and long-term FD.
Things to check while comparing the highest fixed deposit interest rates
Even though interest rates are the only factor that investors consider, they should take into account features and associated benefits while opting for a proficient fixed plan.
Some of these pointers include –
- If they seek a systematic deposit plan or not – Investors can opt for a periodic deposit facility.
- The ease of investing in FDs.
- Whether they can open an account online.
- If it extends a loan facility – FD account holders can avail of a loan against their FD. The loan they avail is usually a discounted amount of the FD.
Additionally, most NBFCs like Bajaj Finance extend several other benefits to FD holders and make their investment fruitful. This being said, while comparing the rates of interest, they should use a fixed deposit calculator to make a more informed decision.
