FD Interest Rates: Read to know everything About it

The fixed deposit is the product that is offered by the banks in which the customer deposit the amount with the bank for fixed period of time and the bank pays the interest rate over the amount deposited. It is one of the most secure ways of increasing your money. The investments are always the subject of risk, but if you invest in the fixed deposit account your money is secured with the bank and so is the interest money. Thus, it is one of the most popular investments among the people.

The security of the money and the good interest rate are two of the main cause of its popularity. The flexibility of the tenure is another factor which makes it a favoured choice. The fixed deposit tenure can be extended from 7 days to 10 years. The customer can choose the time period and hold on to the deposit money for the time. The investor gets a good amount of returns as compared to other investment.

There are other benefits that are important to note. Almost all the banks give special privilege to the senior citizen by providing the higher interest rate than regular people.The fixed deposit helps you to save your taxes according to the section 80C. The amount of 1 lakh if fixed for five years then you are entitled to the tax exemption. Whereas the interest earned through the deposit are taxable. Also, you can take a loan against your fixed deposit. If you urgently need the cash then you should not worry as you don't have to break your fixed deposit rather you can take a loan against it and meet your requirements.

How to get the maximum outcome:

• You should make sure that the bank or NBFC is trustworthy.
• The principal amount deposited should be carefully looked at before the scheme is selected by you.
• Select the tenure as per your requirement.
• The interest rate should be properly compared before the scheme is selected. You should go for the one which benefits you the most.
• The terms and conditions related to the penalty clause should be carefully read and monitored before investing in the fixed deposit.

Factors affecting the Interest Rate:

The interest rate of the fixed deposit changes from time to time. There are several economic factors that affect the rate of interest. Given below are few of the factors that affect the fixed deposit interest rate:

• The regulation of RBI
• Inflation
• Recession
• Demand and supply of credit
• Current economic scenario

The fixed deposit interest rate in SBI:

• 7 days to 45 days the rate of interest is 3.75%
• 46 days to 210 days the rate of interest is 3.85%
• 211 days to less than 1 year the rate interest is 4.00%
• 1 year to less than 3 years the rate of interest is 6.00%
• 3 years to 10 years the rate of interest is 5.50%

The fixed deposit interest rate in HDFC:

• 7 days to 14 days the rate of interest is 3.50%
• 30 days to 45 days the rate of interest is 5.50%
• 46 days to 6 months the rate of interest is 5.75%
• more than 6 months to 9 months 15 days the rate interest is 6.00%
• 1 year to less than 3 years the rate of interest is 6.00%
• 9 months 16 days to less than 1 year the rate of interest is 6.25%
• for 1 year the rate of interest is 6.9%
• 1 year 1 day to 1 year 3 days the rate of interest is 6.95%
• 1 year 4 days to 10 years the rate of interest is 6.25%

The fixed deposit interest rate in ICICI:

• 7 days to 14 days the rate of interest is 4.00%
• 46 days to 210 days the rate of interest is 3.85%
• 61 days to 289 days the rate of interest is 6.25%
• 290 days to less than 1 year  the rate interest is 6.50%
• 1 year to 389 days the rate of interest is 6.90%
• 390 days to 2 years the rate of interest is 7.00%
• 2 year 1 day to 5 years is 6.75%
• 5 years to 10 years the rate of interest is 6.50%

The fixed deposit interest rate in Axis Bank:

• 7 days to 45 days the rate of interest is 3.50%
• 30 days to 45 days the rate of interest is 5.50%
• 46 days to 3 months the rate of interest is 6.00%
• 3 months to less than 6 months the rate of interest is 6.25%
• more than 9 months to less than 1 year the rate interest is 6.75%
• 1 year to less than 2 years the rate of interest is 7.00%
• 2 years to 10 years the rate of interest is 6.75%

The fixed deposits interest rates change from time to time depending on the market scenarios. You should carefully evaluate and compare the interest rate to select the best scheme available to you.