10 Private Banks Offering Highest Fixed Deposit Returns

A Fixed Deposit is one of the most secure investment instruments. The funds parked in the scheme are not affected by volatile market movements & offer a steady growth, meaning an individual can earn a guaranteed return on the money deposited for fixed period of time. For a secured future, everyone believes in savings, no matter if they are from public/private sector or the small scale farmers. Fixed Deposit is beneficial for everyone including the farming community. 

The rate of interest of Fixed Deposit varies from bank to bank. Almost all the public sector & private banks including the post office, today offer Fixed Deposits. Although many instruments are available in market that promises higher returns than FD’s, this conventional mode of investments is still preferred by the large population, especially in small towns & rural areas. This is mainly because FD is risk – free instrument & it also qualifies for deduction under section 80 (C) of Income Tax Act, 1961.

The investment tenure & return of the FD’s vary across banks. Generally, the tenure ranges from 7 days upto 10 years. The interest earned through the FD is calculated using the compound interest formula. The return is compounded periodically- monthly, quarterly or annually. Typically, the FD return is compounded quarterly.  

In other words, the FD account is an account where an investor deposits money for a specified period & the interest rate does not fluctuate during the period that is decided at the time of opening of an account.

There many banks that offer an additional return of 0.5% to senior citizens to regular the customers. Besides, many banks also allow investor to apply for a collateral-free loan against the Fixed Deposits. The loan amount against the fixed deposits offered by banks generally is 75% of the FD value. This provides the liquidity.

Therefore, one can easily invest in the Fixed Deposit without having to worry about the returns & defaults.

Top Private Banks that offer high FD Interest Rate

For more details visit your nearest bank branch and they will provide you with complete details.