Fixed Deposit Interest Rates Of Bank And NBFCs : Compared Here

While earning, most people prefer investing their money, with the goal of securing their futures. To save one’s life-long earnings, people mostly opt for several investment scheme that will help them to double their money along with safety. There are several investment schemes available in the Indian economic sphere

 
Fixed Deposit Interest Rates Of Bank And NBFCs : Compared Here

While earning, most people prefer investing their money, with the goal of securing their futures. To save one’s life-long earnings, people mostly opt for several investment scheme that will help them to double their money along with safety.

There are several investment schemes available in the Indian economic sphere. The most popular investment schemes available in India and their offers are mentioned below:

Investment options Maximum Amount Minimum Amount Minimum Investment Tenure
Public provident Fund (PPF) Rs. 1,50,000/- (1 financial year) Rs. 500/- (1 financial year) 15 years
Bank Fixed Deposit (FD) No limit Rs. 1000/- 7 days
Senior Citizens’ Saving Scheme (SCSS) Rs. 15 lakhs No limit 5 years
RBI Taxable Bonds No limit Rs, 100/- 7 years
National Pension System (NPS) No limit No limit Variable; until age 60
Recurring Deposits No limit No limit 6 months

Fixed Deposit

Fixed deposits are very popular investment scheme among the people of India. FD offers guaranteed returns to the investors on the fixed amount they deposited at the time of maturity. It is considered as one of the safest investment avenues compared to that of others. The investors can avail a handsome amount of interest rate upon the FD they kept for a given period of time. The one factor that made FD popular is the high interest rate return. Bajaj Finance is one such financial institutes that facilitate its investors with highest interest rates on FD. It ensures highest safety ratings with keeping principal amount intact. Minimum amount to be deposited under FD is Rs. 25,000/-.

FD Interest Rate

There are several banks and NBFCs and other financial institutes to cater the need of diversified investors. Therefore, they offer different scale of interest rate and tenure in accordance to the investor’s ease. Some banks and NBFCs’ proposed interest rate on FD are as follows:

Bank and Financial Institutes FD interest rate (Regular) FD interest rate (Senior Citizen) Tenure
State Bank of India 5.75%-7.00% 6.25%-7.60% 7 days to 10 years
ICICI Bank 4.00%- 7.50% 4.50%- 8.00% 7 days to 10 years
Bajaj Finserv 8.00%-8.75% 8.35%- 9.10% 12 months to 60 months
HDFC Bank 7.60% 7.85% 7 days to 10 years
Axis Bank 3.50%-8.00% 3.50%- 8.15% 7 days to 10 years
Punjab National Bank 5.75%-7.00% 6.25%-7.50% 7 days to 10 years
IDFC First Bank 4.00%-8.25% 4.50%-8.75% 7 days to 10 years

Recurring Deposits

In recurring deposit, the depositor is allowed to deposit a specific sum of money at a regular interval. One can open a recurring deposit at a post office or any banks. It is also a kind of term deposit on which a bank provides interest on the savings at a particular rate of interest. Once the specified time is over, the depositor doesn’t have to make further investments.

RD Interest Rate

RD interest rate varies from bank to bank and depend on which category the account falls in. senior citizens are provided with higher rate of interest. Some banks’ RD interest rates are as follows:

Banks and post office RD interest rate (Regular) RD interest rate (Senior citizen)
Axis Bank 6.25%- 6.90% 6/5%- 7.55%
HDFC Bank 6.25%- 7.25% 6.75%-7.75%
ICICI Bank 6.0%-7.25% 6.5%- 7.75%
India post 7.30% 7.30%
State Bank of India 6.70%- 6.85% 7.20%- 7.35%

Difference Between Fixed Deposit and Recurring Deposit

When it is the question of savings, every person wants to earn high returns on their investments. Bank deposits is one of such kinds, where people feel more secure to invest their money in. There are various deposit schemes facilitated by different banks and financial institutes. Online Fixed deposit Account is one such scheme where the investor can invest their money for a fixed time period. On the other hand, in recurring deposit, the investor can deposit his/her money to a particular account for a long time at regular intervals. The key differences between recurring deposits and fixed deposits are as follows:

Parameters Recurring Deposit Fixed Deposit
Investment Instalments One-time
Minimum amount to be deposited Nominal Slightly high
Duration Minimum 6 months and maximum of 10 years Minimum of 7 days and maximum of 10 years
Return Fixed interest rate (low) Fixed interest rate (comparatively high)
Facilitated institutes Post-office and banks Post office, banks and NBFCs
Taxation Taxable as per the tax slab of an investor Taxable as per the tax slab of an investor
Tax deduction at source 10% TDS if the interest earned is more than Rs. 10,000 in one bank 10% TDS if the interest earned is more than Rs. 10,000 in one bank

Making sure that you choose the right investment scheme can make a lot of difference when you are looking to maximize your portfolio.

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