Fixed deposit is an investment scheme or instrument provided by banks, where the depositor invests a set amount of money at a fixed interest rate which helps in preserving the depositor’s savings. This is considered as the most common and reliable forms of investment in India when compared with other financial options like equity investment or mutual funds.
The interest rates for opening a fixed deposit account might differ from bank to bank, hence one should choose a bank after weighing the options carefully. Other financial organizations should not be considered as there is no guarantee that you would get the wholesome amount in return, banking institutes under RBI’s jurisdiction should be considered as RBI will be able to appoint you with a banking ombudsman in case of any grievance.
Below are few of the fixed deposit interest rates by the most reliable banks in India:
- Bank of Baroda: This bank offers fixed deposit account from 91 days to 180 days at a 5.75% interest rate
- ICICI Bank: This bank provides 61 days to 184 days Fixed deposit account at 6.25% interest rate
- HDFC Bank: Offers 46 days to 6 months Fixed deposit account at 6.25% interest rate
- State Bank Of India: Offers 180 days to 210 days Fixed deposit account at 6.35% interest rate
- Axis Bank: Offers 6 months to 8 months 29 days fixed deposit account at 6.75% interest rate
- IDFC Bank: Offers 91 days to 180 days fixed deposit account at 6.75% interest rate
- Kotak Mahindra Bank: Offers highest interest rate of 7% fixed deposit for 180 days to 269 days
There are different types of fixed deposit account provided by the bank which lasts up to 10 years and in other countries like Canada, Australia and New Zealand, the term Fixed Deposit is known as Term Deposit and is known as Bonds in the United Kingdom, and is known as Certificates of deposit in the United States of America. There are websites available which help you choose the right bank for a fixed deposit by calculating the FD rates with the Amount paid which is also known as ‘Maturity Value’. This helps you evaluate the returns based on the banks which are under RBI and the amount you want to invest in.