Fixed Deposit Interest Rates, an attraction for investors in India

by Dhara Mehta Content Writer

Yes, we all have that little investor in us hiding somewhere. But looking at the present economic condition of India, investing money in stock market or mutual funds might not seem a good idea. With stock markets not looking promising at all and the crisis adding to the trouble, investors are finding better options to invest their money into. But if you happen to find a way where savings are coupled with decent gains over the course of time, it would be much better.

According to me, investing in a fixed deposit or term deposit in India would be the right thing to do compare to other alternatives where money promises to give you returns. Hence, it is the best source to rescue you from the present crisis.

A fixed or term deposit allows a person to deposit money for a fixed period of time. It is considered as one of the oldest and most reliable avenue for investment in the country. It proves to be ideal when thinking about long term investments. It caters to people from all age groups and background. While young people prefer depositing money for a long period of time in order to get eligible for regular incomes, most businessmen prefer investing a lump-sum amount as storage for future use. Here, the account holder can choose the tenure of deposit with as short as 15 days to up to 10 years.

When the period of depositing comes to an end, the person gets a higher fixed deposit interest rate depending on the money deposited. All the deposits in Indian banks are considered safe as they are monitored and controlled by the RBI.

The interest rates here are relatively higher compared to the savings account. Here, the amount is stored as a lump sum, so the rate of interest becomes applicable on a much larger amount. Ever since its inception in India, fixed deposits are considered important for investors. Earlier, people preferred investing for a long period of time. However, to offer some flexibility to the investors, most banks in India are offering a short term fixed deposit.

The fixed deposit interest rates in India differ from bank to bank. However, due to the fierce competition in the banking sector today, every other bank is coming with its new schemes and plans to cater the investors in India. Through fixed deposits, a person can also make use of the overdraft facility that allows him to withdraw money whenever required.

So, if you ever make up your mind regarding investments through fixed deposits, make sure you find the best provider to serve you in this journey. The bank should be providing you with the best interest rate along with quality service.