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Which FD Schemes Provide Highest Interest Rates in India?

by Arwind Sharma Finance Advisor
Everyone wants to preserve a part of their savings to meet the future liabilities, and a fixed deposit scheme is a perfect option to do so. You can get a steady FD interest rate which makes it a favorable investment option amongst Indians.

A fixed deposit is an investment plan where the interest rate is fixed and doesn’t float as per the market fluctuations. This way, you can learn the exact worth of your investment.



You can avail higher FD interest rates and how!


Fixed deposits are known as one of the safest and profitable investment options. An interest rate is the percentage of money that you will earn from your investment over the period of chosen tenor.

The FD interest rates do not fluctuate and remain fixed throughout the investment term. The interest rate of an FD is not dependent on the market trends, and changes thus remain fixed.

The rate is decided according to the tenor of the FD that you choose to invest. You can avail higher and risk-free returns in comparison to other investment plans such as a recurring deposit or a saving account.

Usually, a fixed deposit offers you interest up to 7.85% to an individual, whereas, you only get around 6% as interest on a recurring deposit scheme. If we compare the interest on savings account, you only get up to 7% interest rate which is quite less. A fixed deposit scheme also gives an additional benefit to the senior citizens by offering them an extra 0.35% interest.

Therefore, it can be said that an individual can earn higher interest rate and can enjoy the risk-free returns on their investment. Apart from this, a fixed deposit can offer you many more reasons to invest.

Benefits of investing in a fixed deposit scheme

  • Guaranteed returns

A fixed deposit scheme gives you the promised returns, as the returns are not subject to the market risk. You can easily invest in an FD if you don’t want to risk your hard-earned money. At the time of maturity, you will get the invested amount that is the principal along with interest earned from the investment.

  • Easy withdrawal

By investing in a fixed deposit scheme, you can avail the benefit of easy liquidity. If you have an emergency and you need cash, then you can easily break your FD and withdraw the invested money. A premature withdrawal will cost you a small penalty that may be in the form of lower interest or a penalty fee.

  • Flexible tenor

A fixed deposit scheme offers you the facility to choose the tenor or duration of the investment you want to make. Usually, the tenor of a fixed deposit ranges from 12 months to 60 months. An investor can comfortably select any duration that falls into this range according to his/her needs and affordability.

  • A higher rate of return

The FD interest rates are higher than that of a recurring deposit account or a savings account. This investment is one of the safest investment options which gives you guaranteed returns and at zero investment risk.

  • Flexible pay-outs

The biggest advantage that you can get from an FD investment is that you can choose the time of receiving the interest earned on the investment.

If you select a cumulative FD option, you will earn the compound interest at the end of the tenor along with the principal amount. Whereas, if you choose a non-cumulative FD option, you will get the interest at different intervals that may be annual, monthly or quarterly.

A periodic interest pay-outs ensures that you earn extra income that can be reinvested to enjoy bigger maturity benefits.

Also Read :- Guide to Investing

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About Arwind Sharma Advanced   Finance Advisor

32 connections, 0 recommendations, 103 honor points.
Joined APSense since, October 9th, 2015, From Pune, India.

Created on Apr 28th 2018 01:47. Viewed 399 times.

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