Compare Best Interest Rates On Fixed Deposit
Why Comparing of Fixed Deposit interest is Imperative
- First and foremost- To get the maximum interest rates on your hard earned money.
- Many banks allow account opening online. So you can immediately switch to the bank offering best Fixed Deposit rate.
- You may require your money after certain period of time from 15 days to 10 years. All banks offer different rates for different tenures so comparison gives you an option to reconsider your investment with a particular bank.
- There are frequent rate changes in banks interest rates and many option in today's volatile market. To keep track on them you should compare Fixed Deposit rates.
Best Fixed Deposit Rates Compared
Highest Fixed deposit Rate for 6 months - At present ESAF, Equitas, Ujjivan, Utkarsh Small Finance Bank is giving interest rate of 7.50% p.a for 6 months along with Suryoday Small Finance Bank at 7.75% p.a.
Highest Fixed deposit Rate for 1 Year - For 1 year tenure ESAF, Equitas, Fincare Small Finance Bank is giving 8.75%. Utkarsh Small Finance Bank 1 year rate is 9.00%.
Highest Fixed deposit Rate for 2 Years - In 2 years tenure again Suryoday Small Finance Bank and Fincare Small Finance Bank are giving highest interest rate at 9.00% p.a.
Best Interest Rates On Fixed Deposits for 6 months to 5 years
Best Interest Rate for 6 Months < 1 Year
Best Interest Rate for 1 Year < 2 Years
Best Interest Rate for 2 Years < 3 Years
Best Interest Rate for 3 Years < 4 Years
Best Interest Rate for 4 Years < 5 Years
Best Interest Rate for 5 Years and Above
|AU Small Finance Bank||7.00%||8.50%||7.75%||8.00%||8.00%||7.25%|
|Bank of Baroda||6.70%||6.85%||6.70%||6.70%||6.70%||6.70%|
|Bank of India||6.25%||6.65%||6.70%||6.50%||6.50%||6.50%|
|Bank of Maharashtra||6.25%||6.65%||6.70%||6.50%||6.50%||6.50%|
|Capital Small Finance Bank||7.15%||7.65%||7.65%||7.65%||7.65%||7.50%|
|Catholic Syrian Bank||6.50%||7.00%||6.75%||6.50%||6.50%||6.50%|
|Central Bank of India||6.50%||6.60%||6.50%||6.50%||6.50%||6.50%|
|City Union Bank||7.00%||7.35%||7.35%||7.35%||7.35%||6.70%|
|Equitas Small Finance Bank||7.50%||8.75%||8.80%||7.00%||7.00%||7.00%|
|ESAF Small Finance Bank||7.50%||8.75%||8.00%||7.00%||7.00%||7.00%|
|Fincare Small Finance Bank||7.00%||8.75%||9.00%||8.00%||8.00%||7.00%|
|J & K Bank||7.05%||7.30%||7.30%||7.30%||7.30%||6.50%|
|Karur Vysya Bank||6.75%||7.25%||7.00%||7.00%||7.00%||7.00%|
|Kotak Mahindra Bank||7.00%||7.40%||7.25%||7.10%||7.00%||6.50%|
|Lakshmi Vilas Bank||7.30%||7.80%||7.60%||7.75%||7.75%||7.75%|
|Punjab & Sind Bank||6.40%||7.00%||6.60%||6.55%||6.55%||6.55%|
|Punjab National Bank||6.35%||6.85%||6.75%||6.25%||6.25%||6.25%|
|South Indian Bank||6.90%||7.60%||7.10%||7.00%||7.00%||6.50%|
|Suryoday Small Finance Bank||7.75%||8.50%||9.00%||8.00%||8.00%||8.25%|
|Ujjivan Small Finance Bank||7.50%||8.30%||8.60%||7.00%||7.00%||6.50%|
|Union Bank of India||6.50%||6.75%||6.70%||6.85%||6.85%||6.85%|
|United Bank Of India||6.00%||6.50%||6.25%||6.00%||6.00%||6.00%|
|Utkarsh Small Finance Bank||7.50%||9.00%||7.85%||7.00%||8.00%||7.00%|
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Why Fixed Deposits can be preferred over other investment options
Fixed Deposit's provide guaranteed and secure source of income to you. Fixed Deposits provide you greater earnings with the benefits such as loan against deposits, no penalty on premature withdrawals etc.
Fixed Deposit's can be made from tenures ranging from seven days to 10 years.
Most banks provide Senior citizens get an extra benefit on the Fixed Deposit interest rate.
Earnings/Interest are quarterly compounded and can be remitted to your savings account or added back to Fixed Deposit to give you power of compounding.
There is normally no penalty on premature withdrawal of Fixed Deposit below certain amounts. On bigger amounts there is premature withdrawal penalty.
Most banks give sweep-in facility and sweep out facility, which helps to give you better interest as that of Fixed Deposit on your idle money in savings account.
You can also avail overdrafts against your fixed deposits. Most banks have started giving this facility through their internet banking facility. You can make and break Fixed Deposit as well as Advance against Fixed Deposit online.
Fixed Deposit's are subjected to Auto Renewal unless an instruction is given to counter it ensuring that your Fixed Deposit will be rolled over for the existing period of the deposit, even if you forget to give instructions (varies bank to bank)
Tax Saver Deposits - Five years tax-free Fixed Deposit (Interest Rates are normally same as Regular Fixed Deposits but check with the bank, it may vary). You get tax benefit of the principle amount in the year of investing in tax saver Fixed Deposit.
Fixed deposits with tenure of below 6 months 1 day, the interest is calculated at maturity as Simple Interest
As per changes in the Finance Bill 2015, effective 1st June 2015, TDS on Term Deposits in now applicable at Bank level instead of branch level. This means that TDS will be deducted taking into consideration of all your Fixed Deposit's in a particular bank.
As per section 206AA introduced by Finance (No. 2) Act, 2009 w.e.f. 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at the rate of 20% (as against 10% which is the existing TDS rate) in case of Domestic deposits and 30.90% in case of NRO deposits.
In the absence of PAN, Form 15G/H and other exemption certificates will be invalid even if submitted & penal TDS will be applicable.
Customer can submit form 15G/H to avail benefit of TDS exemption. In case the amount in 15G/H exceeds the applicable minimum tax exemption limit, the form would not be valid.
WHICH INVESTMENT OPTION TO PREFER? MUTUAL FUNDS, BANK DEPOSITS OR REAL ESTATE
In today’s scenario, mutual funds, bank deposits and real estate are top most investment options for people. All these three have their own pros and cons and choosing between these three could be tricky. Bank deposits on one hand are totally secure but they give less return. Mutual funds are a high risk high return game and lastly real estate. Though preferred by a majority of people, real estate is becoming quite risky and dull nowadays.
Before discussing the pros and cons of these three, first we should give you a quick glance as to what these options are.
Considered as the safest investment option, bank deposits are a choice for a lot of salaried person, senior citizens and housewives. Although the return is less and the rates are on a downfall, still if you do not want to worry about daily market sentiments and variations, this is the best option for you.
Even if you are investing with the motive of tax saving, this is always a good option (click here to know tax saver rates of various banks ). You can get your after 5 years with assured returns; however, you will have to pay tax on your entire interest income.
Mutual funds have over the time emerged as a favored investment option for people who have some appetite for risk and want to get higher return for their investments. There are varieties of funds available for investors ranging from high risk high return equity funds to low risk debt funds and bonds. Also, there are options to invest like in lump sum or SIP.
Mutual funds also provide tax saving option with lock in period of 3 years and the good part is that the interest earned is not taxable but your return will be market dependent.
Real Estate (Non- commercial)
Real estate was earlier an option for those who wanted a home for themselves but over a period of time, this has become most preferred option for investment due to the high returns at one hand and having a secured asset for lifetime on the other hand.
For people today, real estate has become a top investment option and most of the people are buying flats or plots for getting good return.
Real estate is no doubt a good investment option but with changing rules and increased restrictions imposed by government on this sector, currently it is seeing a downfall. Investors who have tied up huge sum in this sector are not able to get returns plus their exit option is also limited since the buying market for real estate is low at present.
With the demonetization and government initiatives to thoroughly investigate benami properties and restriction on cash transactions, real estate is seeing a huge fall in sales.
With tax point of view, taking a housing loan is advantageous as you earn rebate both on your principal as well as interest payment.
Pros and Cons of Bank Deposits, Mutual Funds and Real Estate
With the backdrop discussed above, now we will be telling you pros and cons of all three investment avenues.
- Risk factor is negligible.
- You can invest even small amounts.
- You can close deposit and withdraw money any time (except tax saver).
- You can also get loan on deposit up to 90% at a lower interest rate.
- Senior citizens get benefit of higher interest rate.
- Not linked to market in any manner.
- You can get tax rebate up to Rs.1.50 lacs by investing in tax saver deposits.
- You can earn huge returns with up to 30-40% interest rate.
- You can invest in open ended scheme and withdraw your money any time.
- You have option to choose from a wide array of funds as per your risk appetite.
- You can choose between SIP and lump sum mode.
- You can save tax by investing in ELSS (Equity linked savings scheme) with a lock in period of only 3 years.
- Your interest amount earned on ELSS is tax free unlike in deposits.
- Your investment may earn interest even higher than mutual funds and deposits.
- Apart from returns, you have an asset for yourself for lifetime.
- You can do huge tax saving by opting for housing loan.
- Both interest and principal portions of housing loan qualify for tax rebate.
- Return or interest earned on your income is quite low nowadays.
- You have to pay TDS on your entire interest income plus your interest income will be added to your total income of the respective financial year.
- Tax saving option comes with a lock in of 5 years and interest earned is taxable.
- You can get a loan easily but you have to pay 1-2% extra for that.
- Risk factor is quite high especially in equity sector, however, mutual funds in general are categorised as risky investment.
- Your return is totally dependent on market sentiments.
- Sometimes your present value of funds is even less than your total invested amount.
- Almost all fund managers and companies charge some fee on your investment.
- Nowadays, real estate is facing huge fall in sales.
- Your money will be tied up and it is difficult to get it at time of need.
- Even if the rate of your property doubles, it is very difficult to find a buyer.
- You need a huge some to invest in real estate.
- Government has imposed various restrictions in this sector now.
All three investment options come with their own pros and cons. After going through all the aspects of bank deposits, mutual funds and real estate, ultimately an investor should decide their final choice on the basis of their risk and return appetite. If the amount of money to be invested is not huge, a conservative investor will opt for bank deposits and an aggressive investor will go for mutual funds.
However, to best manage your savings, you should opt for a combination of various options. You can work out the percentage of your savings you want to invest in each investment avenue. At the end, just remember it is your hard earned money and you deserve to get the best out of it.