Unlike market-linked investments, FDs are not subject to market volatility, providing a reliable and steady return. This makes them an ideal choice for risk-averse investors or those looking to park their funds safely while earning a higher interest rate compared to regular savings accounts.
Fixed Deposit (FD) is a small savings and guaranteed return scheme that involves depositing a lump sum with a bank or financial institution at a fixed interest rate for a specified period.
The principal amount earns interest over time, which is credited at regular intervals or at maturity. In the realm of personal finance, FDs continue to be a preferred investment avenue for many due to their secure nature and guaranteed returns.
The appeal of FDs lies in their safety and predictability. Unlike market-linked investments, FDs are not subject to market volatility, providing a reliable and steady return.
This makes them an ideal choice for risk-averse investors or those looking to park their funds safely while earning a higher interest rate compared to regular savings accounts. A 5-year FD also provides tax benefit under Section 80C of the Income Tax Act, 1961.
Additionally, FDs offer flexible tenures, ranging from a few months to several years, allowing investors to choose a term that best suits their financial goals.
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Here are some of the current highest interest rates offered by prominent banks in India for general and senior citizens:
State Bank of India
– General Citizens: 7.10% for 400 days
-Senior Citizens: 7.60% for 400 days
Punjab National Bank (PNB)
– Geneal Citizen: 7.25% for 400 days
-Senior Citizens: 7.75% for 400 days
Bank of Baroda (BOB)
– General Citizen: 7.25% for above 2 years to 3 years
– Senior Citizens: 7.75% for above 2 years to 3 years
HDFC Bank
– General Citizens: 7.25% for 18 months to less than 21 months
– Senior Citizens: 7.75% for 18 months to less than 21 months
ICICI Bank
– General Citizens: 7.20% for 15 months to less than 18 months
– Senior Citizens: 7.75% for 15 months to less than 18 months
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Canara Bank
– General Citizens: 7.25 for 444 days
– Senior citizens: 7.75 for 444 days
Union Bank of India
– General Citizens: 7.25 for 399 days
– Senior Citizens: 7.75 for 399 days
Axis Bank
– General Citizens: 7.20 for 17 months to less than 18 months
– Senior Citizens: 7.85 for 17 months to less than 18 month
IDFC First Bank:
– General Citizens: 7.90 for 500 days
– Senior Citizens : 8.40 for 500 days
Indian Overseas Bank
– General Citizens : 7.30 for 444 days
– Senior Citizens: 7.80 for 444 days
The fixed nature of FDs ensures capital preservation and predictable growth, making them a key component of any financial strategy. With a variety of tenures and interest rates available from prominent banks, investors can choose the best option to suit their financial needs and goals.
