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
May 31, 2019, 21:18 IST
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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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