Choosing the right fixed deposit (FD) scheme to invest your hard-earned money is a tough decision, as it involves finding a scheme that offers the best returns. It is even more important to look for schemes that offer consistently high fixed deposit rates, as these deposits help to increase your savings. In this blog post, we will help you to understand how to choose the best FD scheme with high fixed deposit rates. We will discuss the various factors that you need to keep in mind while selecting the best FD scheme.
What is a Fixed Deposit (FD) Account?
A fixed deposit (FD) is a type of financial product offered by financial institutions such as banks. An investor can deposit a sum of money for a fixed period which can range from a few weeks to several years. The interest rate on a fixed deposit is usually lower than other investment options such as stocks and bonds but higher than a savings account.
How to Choose the Best FD Scheme With High Fixed Deposit Rates?
Here are a few things you can consider when choosing a fixed deposit (FD) scheme with high-interest rates:
- Compare rates from different banks and financial institutions: Look at the interest rates offered by different banks and financial institutions and compare them to find the best rate.
- Tenure: The longer the tenure of the FD, the higher the interest rate will generally be. However, keep in mind that you will not have access to your money for the duration of the FD.
- Stability and reputation of the bank or financial institution: Choose a bank or financial institution that is stable and reputable to ensure the safety of your money.
- Reading the fine print: Make sure you understand the terms and conditions of the FD scheme, including any fees or charges that may apply.
- Add-on benefits: Some FD schemes may offer additional benefits, such as the option to withdraw your money before the maturity date or the ability to earn higher interest if you meet certain criteria (e.g. maintaining a certain balance in your account).
What is the Best Tenure for Your Fixed Deposits?
The best tenure for a fixed deposit (FD) will depend on your financial goals and needs. Here are a few things to consider when deciding on the tenure of your FD:
- Short-term vs. long-term goals: If you have short-term financial goals, such as paying off a debt or saving for a down payment on a house, a shorter-term FD may be a good choice. On the other hand, if you have long-term goals, such as saving for retirement, a longer-term FD may be more suitable.
- Access to funds: With a shorter-term FD, you will have access to your money sooner, but you may earn a lower interest rate. With a longer-term FD, you will earn a higher interest rate but will not have access to your money for a longer period.
- Inflation: The longer the tenure of your FD, the more likely it is that the purchasing power of your money will be eroded by inflation. This means that the value of your money may be worth less in the future due to rising prices.
What are the Best FD Schemes With High Fixed Deposit Rates in India?
Below is a table showing interest rates from all major banks in India.
| Banks Offering FD | Interest Rate | Senior Citizen Interest Rate | Tenure |
| Axis Bank | 3.50 – 6.10% | 3.50 – 6.85% | 7 days-10 years |
| Bandhan Bank | 3.00% – 5.50% | 3.75% – 6.25% | 7 days – 10 years |
| Bank of Baroda | 3.00% – 5.65% | 3.50% – 6.65% | 7 days – 10 years |
| Canara Bank | 3.25% – 7.00% | 3.25% – 7.50% | 15 days – 10 years |
| HDFC Bank | 3.00% – 4.00% | 3.50% – 4.50% | 33-99 months |
| ICICI Bank | 3.00% – 6.00% | 3.50% – 6.60% | 7 days -10 years |
| Kotak Bank | 2.50% – 5.25% | 3.00% – 5.75% | 7 days – 10 years |
| Punjab National Bank | 3.00% – 5.75% | 3.50% – 6.25% | 1-10 years |
| State Bank of India | 3.00% – 5.85% | 3.50% – 6.65% | 7 days-10 years |
| Union Bank | 3.00% – 6.70% | 3.50% – 7.20% | 7 days – 10 years |
How to Reduce the Risks Associated With FD Schemes?
To reduce the risks associated with FD schemes, investors should consider the following tips:
- Review the credit ratings of the issuer and the quality of the underlying assets before investing.
- Only invest in FDs that are backed by high-quality assets.
- Make sure that you are comfortable with the credit risk of the issuer.
- Avoid investing in FDs that are backed by subprime mortgages or other high-risk assets.
- Always read the terms and conditions of the FD before investing.
- Do not invest more than you can afford to lose.
Are FD schemes a good investment option?
There is no easy answer when it comes to whether or not FD schemes are a good investment option. On one hand, they offer a relatively stable and predictable income stream, which can be attractive to some investors.
On the other hand, FDs typically offer lower returns than other investment options, such as stocks or mutual funds. Additionally, if interest rates rise, the value of FDs may fall. Ultimately, whether or not FD schemes are a good investment option depends on the individual investor’s needs and goals.
In case you’d like to invest and begin your journey to wealth but are skeptical about how and where to invest, Rurash Financials can always guide you, so please reach out to our relationship manager or email us at fixedincome@rurashfin.com with any questions.