Top Fixed Deposit Schemes in India
Fixed deposit schemes have always been the primary choice of savings and for wealth creation, because it is safe and the money remains secure. The government backs the fixed deposit investments of the investors under any government-approved banking organisation. Therefore, there is no risk of principal default.
With such assured security, the fixed deposit schemes also provide a satisfactory rate of interest. Most of the private and the public banks offer an interest rate between 3% and 6% p.a. But amidst such trends, there are certain banking organisations that are offering a rate of interest as high as 8.25% p.a. for fixed deposits.
Although fixed deposit investments are secured for the capital, yet the appreciated value is not suitable enough to cope with the high rate of inflation. Under such circumstances, this sort of lucrative rate of interest is definitely welcoming. After careful consideration of the relevant risk assessments, the investors might consider investing a certain portion of their finances to any of these banking organisations for an enhanced appreciation.
For maximum gain through fixed deposit investments, the investors are advised to practice what is technically known as the “laddering technique”. It implies the breaking up of the total corpus into different segments of multiple fixed deposits for multiple tenures. This helps in creating an investment loop that is beneficial in the long run providing the assurance of higher returns with better fund management.
List of Banks with a High Rate of Interest for Fixed Deposits
| Name of the Bank | FD Interest Rate (p.a.) | Corresponding Tenure | W.E.F. |
| Suryoday Small Finance Bank | 8.25% | 3-5 years | Aug. 1, 2020 |
| Jana Small Finance Bank | 7.50% | 1-3 years | July 13, 2020 |
| Fincare Small Finance Bank | 7.50% | 3-5 years | June 22, 2020 |
| Equitas Small Finance Bank | 7.35% | 2-3 years | June 1, 2020 |
| RBL Bank | 7.25% | 2-5 years | July 23, 2020 |
| AU Small Finance Bank | 7.25% | 2-3 years | July 14, 2020 |
| IndusInd Bank | 7% | 1-3 years | July 13, 2020 |
| IDFC First Bank | 7% | 1-2 years | July 27, 2020 |
| DCB Bank | 6.95% | 2-5 years | July 13, 2020 |
| Ujjivan Small Finance Bank | 6.50% | 1-2 years | August 4, 2020 |
It is evident from the above chart that the rate of interest varies from one bank to another irrespective of the tenure. The standard practising policy of every banking organisation is to offer a relatively higher rate of interest for senior citizens. The general difference is not more than 0.5%-0.75%. The investor is free to choose the cumulative or the non-cumulative option for the interest payout.
- Cumulative Interest
This signifies the total interest accumulated on the deposited value is re-invested on maturity along with the principal.
- Non-cumulative Interest
Under this system, the interest gets credited to the investor’s account. Here the flexibility is offered to the investor regarding the interval of the payout which can be monthly, quarterly, half-yearly, or annually.
Apart from the above-mentioned banking institutions, there are some other banks and financial institutions as well that are offering a higher rate of interest for the 3-year tenure than the average trend.
List of Financial Institutions with a High Rate of Interest for Fixed Deposits
- KTDFC
The rate of interest is 8% p.a. on term deposits for a tenure of 3 years and for the senior citizens, it is 8.25%. All the FD schemes are applicable for TDS and they offer several types of schemes like Periodic Interest Payment Schemes, Money Multiplier Schemes.
- Shriram City
The non-cumulative deposit for 3 years enjoys a rate of interest of 7.86% p.a. The cumulative facility of interest is also offered. The senior citizens are offered a rate of 8.26% p.a.
- Mahindra Finance
With various types of payout option facilities, the best FD rate is offered by Samruddhi Cumulative Deposit scheme. It is 6.30% for the general investors and 6.55% for the senior citizens.
- Sundaram Finance
The interest rate for a 3-year term deposit is 6.25% p.a. for the general investors and 6.75% for the senior citizens. There is the option for premature withdrawal. Nomination facility is also applicable.
- LVB
For general investors, the interest offered is 6% p.a. while the senior citizens enjoy a rate of 6.50% p.a. In case of any premature withdrawal, a penalty of 1% is charged, but if the deposit is above INR 1 crore, then the penalty is waived.
- ICICI Home Finance
The general investors are offered a handsome 6.10% p.a. interest rate while for the senior citizens, it amounts to 6.35% p.a.
- Yes Bank
Offering the facility of reinvestment for a minimum period of investment of 6 months 1 day, the rate of interest offered here is 7% p.a. for the general public and 7.75% p.a. for the senior citizens.
- ICICI Bank
For the 3-year tenure, the interest offered is 5.30% for the general investors and 5.65% p.a. for the senior citizens.
- HDFC Bank
For the general public, the rate of interest offered 5.30% p.a. for a 3-year tenure, while for the senior citizens, it is 5.80% p.a.
Some of the best-fixed deposit schemes have been discussed here. It offers an insight into some of the specialised schemes of one of the most popular investment mediums.