This is the correct time if you want to invest in the Fixed Deposit (FD) schemes. In the past, banks offer very low Interest Rates on the deposits, so people tend to invest on the property like buying home, land, etc. So, it is created very common attitude among people that depositing in the banks doesn’t offer good return. The days are gone, now most of the banks offer decent interest rates on the deposit. I will write about few banks where you can get the high return for your investment.
Why you should invest in Fixed Deposit?
The main reason for investing in the Fixed Deposit is to get the high interested rates. While you are keeping your money with Savings Account, you will get 3.5% p.a. (It is standard for all the banks) as the interest rate for your money. It is very low compare to the Fixed Deposit (FD). Keeping money in the Savings Bank account is good when you have urgent needs, but if you know that there is no spending for the money, please move it to FD and get the highest rates. Nowadays most of the banks like ICICI, HDFC, etc. providing online facility to directly moving your balance to creating the Fixed Deposit (FD) account.
Which bank offers good return for Fixed Deposit?
To write this blog I have inquired on few banks to get the details. So, I don’t want to say only these banks will offer you the best interest rates. Please inquire most of the banks before planning to invest the money.
You can see the list FD rates here. It is ranging from 3.75% p.a. to maximum of 10.5 % p.a..
You can see the list FD rates here. It is ranging from 3.5% p.a. to maximum of 11.0 % p.a..
You can see the list FD rates here. It is ranging from 5.0% p.a. to maximum of 11.0 % p.a.. Compare to other banks ING Vysya offers good interest rates. Here the minimum is 5.0%.
You can see the list FD rates here. It is ranging from 3.0% p.a. to maximum of 10.75 % p.a..
Note that the FD Rates will be 0.5 % will be more for the Senior Citizens (above 60 years old). It is the standard for all the banks. So, if you want to invest, good idea to invest in the name of your parents if they are above 60. You will get 0.5% p.a. more on your money. All the above rates are for the below 15 lakhs. If you are investing above 15 lakhs, the Interest Rates would be different.
TAX on Fixed Deposit (FD)
The interest amount received through Fixed Deposit (FD) is taxable income. They will cut as Tax Deduction on Source (TDS) before giving you the interest money. But, If you have taken loan on the FD, the tax is not applicable. It is better to consult with the bank guys before taking any decision.
Loan on Fixed Deposit (FD)
You can take the loan by using your Fixed Deposit (FD). The Interest Rates will be 1.0% p.a. more than your FD Interest Rates (It may vary depending on the banks). So, you need not close the FD in case if you urgent need of money.
Read : Fixed Deposit Articles
If you have any query related to Fixed Deposit or if you would like to know about the latest interest rates on Fixed Deposit please post it in the comments section. I will answer all your questions. Thank you for reading this article.