Know your Fixed Deposit Rates and Increase Your Savings

The fixed deposit is the scheme that is provided by most of the bank where the customer deposit the amount of money for the fixed period of time and the bank pays the interest rate on the amount deposited. If you want to make the investment and get the good and assured returns, then you should always go for the fixed deposit. The fixed deposit rates are high and competitive which earns you the good returns.

Now you don’t need to worry about your investment plan. as fixed deposit is one of the safest and reliable investment schemes. the returns are assured and there is no involvement of the risk. It is important because generally the investment are subjected to the market risk and the people are quite apprehensive when it comes to investing their money as no guarantee is involved. But investing in the fixed deposit is entirely different as the money is kept with the bank and it pays the interest rate on it and you can take out the money after the maturity of the term deposit.

There are different types of term deposit. One is the short- term fixed deposit and other is the mid- term to long- term fixed deposit. The tenure of the fixed deposit ranges from 7 days to 10 years. The minimum amount of money that can be fixed for the time period is ₹ 10,000 and there is no maximum limit. The senior citizens get more interest rate as compared to the general people. It is the special rates that is given on the amount deposited by them.

There are other advantages of opening the fixed deposit scheme. The fixed deposit comes under the tax deduction scheme. If you have fixed the amount of less than ₹ 1.5 lakh for the time period of 5 years then the amount deposited is exempted from the tax deduction under the section 80C. The deposited amount is tax exempted whereas the interest rate gained over it is taxable. The other advantage is that you can take the loan against a fixed deposit. If you need the loan for any purpose the fixed deposit can help you to get one as you can keep the fixed deposit as your security and avail the 90% of the principal and interest rate amount as the loan amount.

Factor affecting the rates of fixed deposit:

There are many factors that affect the fixed deposit interest rate. The external market forces like the changing government policy, Inflation, Recession, demand and supply of the credits, the current economic scenario etc. These factors changes and accordingly the interest rate of the fixed deposit also changes. Basically, if the liquidity or availability of the cash is abundant with the bank then the interest rate is low whereas if the amount of cash is less than the demand with the bank then the interest rate tends to increase so as to lure the depositors to deposit the money so as to meet the demand of cash.

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 60 days the rate of interest is 5.75%
• 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 deposit is one of the important schemes which is quite popular and the obsolete way to invest in order to get the good and secure returns. Thus, if you also want to increase your wealth and don’t want to take any risk then the fixed deposit is the best way to invest. The fixed deposit interest rate are high and gives you way more returns than keeping your money in the savings account. So, it is the best and safe way to invest.