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Best Fixed Deposit to invest in India

Best Fixed Deposit to invest in India

Your fixed deposit is a savings account with a predetermined interest rate that you put money into for a set period of time. All of the central banks and financial institutions offer fixed deposits. In this plan, you can contribute a specific amount and receive a fixed interest rate on that amount.

When you invest in a fixed deposit, you cannot withdraw your money before maturity. People who want to invest in fixed deposits should choose a duration of 7 days to 10 years. And the term you select will influence your interest rate. The investor will profit from interest on the money monthly or quarterly.

Considerations Before Investing in Fixed Deposits

Here are a few things to consider before investing in fixed deposits and deciding which bank is ideal for FDs.

Deposit Capacity

  • The deposit limit is the first thing to think about.
  • The deposit limit is the maximum amount that a bank can give in a fixed deposit.
  • This is because banks frequently consider this amount as a criterion for deciding whether or not to give you a fixed deposit.

If you wish to start your account with a bigger amount than the bank permits, you will have to pay an initial charge.

Rates of Interest

The interest rates offered by various banks are the next factor to consider when investing in fixed deposits. Different banks’ interest rates might range depending on their ratings and financial soundness.
Some banks, for example, may offer lower interest rates than others because they have more branches or because their ratings are lower than those of others. As a result, before making an investment decision, it is vital to research the best-fixed deposit rates.

Availability of liquidity

  • Liquidity is another crucial issue to consider before investing in fixed deposits.
  • This refers to how soon your funds will be available when required.
  • Furthermore, you should confirm that the bank has sufficient cash reserves to pay out your fixed deposit when it matures (after a specified term)

Tax Advantages

If you wish to benefit from a tax deduction on your profits, a fixed deposit is an excellent alternative.
The government gives an interest rate deduction in the form of tax, which you may claim as an income tax exemption.
The amount of interest you may claim is determined by your earnings and other things.

Top Fixed Deposit Schemes in India

1) Bandhan Bank

Bandhan Bank Limited is an Indian banking firm. Treasury, Retail Banking, and Corporate/Wholesale Banking are the Company’s segments. The Treasury division includes investments in sovereign securities as well as trading operations, as well as the central financing unit.
The retail banking category covers lending to individuals/small enterprises via the branch network and other delivery channels, subject to the product’s direction, type, granularity, and low value of individual exposure.

2) Canara Bank

Canara Bank Ltd. is a bank located in India. Treasury Operations, Retail Banking Operations, Wholesale Banking Operations, Life Insurance Operations, and Other Banking Operations are the sectors of the bank. Personal banking, corporate banking, non-resident Indian banking, Internet banking, and micro, small, and medium enterprises (MSME) banking are all services offered by the bank. Education loans, auto loans, house loans, and other personal loans are among the retail lending businesses.

3) AXIS Bank

Axis Bank Limited is a well-known Indian banking and financial services firm based in Mumbai, Maharashtra.
It is considered India’s third-largest private sector bank.

Axis Bank offers its customers a variety of fixed deposit alternatives to help them secure a portion of their funds for a certain period of time.
The competitive Axis Bank Fixed Deposit interest rates assist depositors in earning higher returns by preserving their funds and using them wisely in the future.

Customers must deposit the minimum deposit amount while opening an account.
Additionally, withdrawal of the FD amount is not permitted till the maturity term.
As a result, Axis Bank is frequently regarded as one of the top banks for investing in fixed deposits.

4) Baroda Bank

Bank of Baroda is an Indian bank that offers banking and financial services.
Treasury, Corporate / Wholesale Banking, Retail Banking, and Other Banking Operations are its segments.
Its geographical component encompasses both domestic and foreign operations.

It provides personal banking services such as savings accounts, checking accounts, and term deposits.
It is a popular option and one of the banks in India with the best-fixed deposit rates.

5) The HDFC Bank

HDFC Bank Limited (the Bank) is an Indian private sector bank.
The bank provides a wide range of banking services, including commercial and investment banking on the wholesale side, as well as transactional/branch banking on the retail side.

The Treasury division of the bank largely comprises net interest earnings from the bank’s investment portfolio, money market borrowing and lending, profits or losses on investment activities, and accounting for foreign currency and derivative contract trading.
HDFC Bank is frequently considered the finest FD program in India.

The best-fixed deposit programs in India to invest in 2022

In this table, we will discover which bank is ideal for fixed deposit investment based on its various FD interest rates.

Banks Offering FDInterest Rate ( % )Senior Citizen Interest Rate ( % )Tenure
AXIS Bank2.50 – 5.752.50 – 6.507 days to 10 years
Bandhan Bank3.00 – 5.603.75 – 6.357 days to 10 years
Bank of Baroda2.80 – 5.103.30 – 6.357 days to 10 years
Canara Bank2.90 – 5.502.90 – 6.0015 days to 10 years
HDFC Bank2.50 – 5.603.00 – 6.3533 months to 99 months
ICICI Bank2.50 – 5.503.00 – 6.307 days to 10 years
Kotak Bank2.50 – 5.613.00 – 6.147 days to 10 years
Punjab National Bank2.90 – 5.253.40 – 5.751 year to 10 years
State Bank of India2.90 – 5.503.40 – 6.307 days to 10 years


If you have a big sum of money to invest, a fixed deposit is the best option.
Fixed deposits and recurrent deposits are low-risk investments, whereas MIS is high-risk.

While FDs are secure investments, deciding which one to choose requires careful consideration of elements such as earnings certainty, risk estimates, cash earnings, dividends, and so on.
Such investments should always be planned by investigating various programs and perks and selecting the most profitable strategy.

A fixed deposit calculator can assist you in selecting a suitable scheme and making deposits that are affordable to you. You can quickly calculate your FD interest rates and see how the investment you choose will flow over time before making any decisions.


Reminder from Behindyourgoals

Thank you for taking the time to read this! I hope you properly read our Article and gain knowledge. Behindyourgoals have more articles related to finance & Banking.

By Anchal

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