Best Fixed Deposit Schemes In India 2024 - Interest Rates Comparison

Pradeep Mishra, Content Writer | Monday, 16 September, 2024

Fixed deposits are the most secure and con- venient investment plan that everyone should opt for. You need to lock in a sum of money for a given time with a pre-determined interest rate. You can choose the amount required at your convenience. Also, the term period will depend on your chosen fixed deposit scheme. The main factor in FDs is the interest rate offered, which usually varies with banks. Here, we will provide comprehensive information on the different FD schemes and a comparative study of the interest rates offered by different banks.

The Different Types Of Fixed Deposits

There are various FD plans with different guide- lines and lock-in periods. These plans efficiently serve the various needs and situations of the common people so that everyone can benefit from them. It is thus important to invest in bank FD because the sum grows considerably over the maturing period. Let us look at some of the most common kinds of schemes available. 

• Standard

This is the normal and popular scheme with a term from 7 days to 10 years. The interest here is higher than a savings account. Moreover, you can enjoy loan benefits and other facilities. You can also draw the amount at your convenience but will have to pay a percentage to the bank as a penalty.

• Tax-Saving

Here, the five-year lock-in period is fixed, and you cannot draw your funds at any cost. This plan does not offer any loan or overdraft facilities but allows you to save on TDS charges up to 1.5 lakhs according to 80C of the Income Tax Act.

• Cumulative

The interest earned on the fixed amount is compounded annually. The entire sum and the interest amount are paid together at the end of the term. Though the principal amount increases considerably, it also increases tax liability after maturity.

• Non-Cumulative

This is a much more lenient FD scheme and appropriate for those considering the interest amount as their monthly source of income. In this case, you can choose how to receive the interest amount.

• Senior Citizen

As the name suggests, this FD plan is only for people over sixty. The interest rate is always higher than the Standard fixed deposit schemes. The maturity period can range from ten days to ten years.

A Comparative Study Of Different Interest Rates

Almost all banks offer fixed deposit India with a normal rate for the common people and a hiked rate for senior citizens. Some of the interest rates offered by major banks are as follows,

• IDFC FIRST Bank

This bank offers up to 8% interest p.a. for the regular customers  and up to 8.50 % for senior citizens. The tenure ranges from seven days to ten years. The IDFC FIRST Bank offers monthly,  quarterly and yearly at maturity payouts to serve the needs of different people nationwide. The bank’s simplified digital process allows individuals to open a fixed deposit in three quick steps, with or without having a savings account with IDFC FIRST Bank! One can benefit from the power of compounded growth and these flexible pay-outs, to meet his/her financial goals.

• Standard Chartered Bank

The bank offers 7.50% for the common people and 8.00% for customers over sixty years old. The FD term is from seven days to five years. They offer various deposit product options for NRIs like NRO, FCNR, and NRE.

• AXIS Bank

The interest rate offered to the general public is 7.00%, and it is 7.85% for senior citizens. The tenure range is from seven days to ten years. Here, the minimum amount for FDs is 5000.

• HDFC Bank 

This bank provides 7% for regular people and 7.75% for customers over sixty years. You can choose the loan term between seven days to 10 years at your convenience.

A Quick Overview

Conclusion

Having an FD account is important for securing the future. You can not only choose the loan but also the tenure and payment method. Hence, no other investment can be as profitable as fixed deposits. Going by the figures discussed in this article, opting for IDFC FIRST Bank’s credit cards would be the best option.