Before selecting an FD, compare the interest rates available.
New Delhi: Bank fixed deposits (FDs) remain popular investment instruments, not only among senior persons seeking guaranteed income but also among investors who cannot tolerate risk.
Over-exposure to FDs, on the other hand, is not beneficial, and you should evaluate your asset allocation and goals to determine how much money you should park in them. Saving for your child’s higher education that is 15 years away through FDs, for example, may not be effective because the post-tax interest rate of an FD may not provide a real return (return that is greater than the rate of inflation), but if you plan to take a vacation in two years, an FD can help.
Before selecting an FD, compare the interest rates available. Here is a list of banks that give the highest FD rates for deposits of up to Rs 1 crore over a variety of tenures.
Yes Bank pays up to 6.50% interest on tax-saving deposits for five years. While DCB Bank is giving an interest rate of 5.95% on tax-saving deposits for same tenure. Axis Bank is offering an interest rate of 5.75% on tax saving deposits for five years.
Similarly, RBL Bank offers an interest rate of 5.75% to 6.30% for fixed term deposits of five years. Federal Bank is giving an interest rate of 5.60% for same tenure.
Karur Vysya Bank is offering an interest rate between 5.60% to 5.75% for a tenure of five years. IndusInd Bank is paying an interest rate of 5.50%- 5.60% for a duration of five years.
