Financial experts always emphasise on the importance of saving for future. It is vital to keep aside some funds from your monthly income if you to create financial independence for yourself. With rising inflation, parking funds might not be enough for the long run. The decreasing value of your savings makes it essential for you to invest smartly in avenues that can generate good returns.
Now, while there are numerous investment options, one of the most preferred options is investing in fixed deposits. This is because a fixed deposit is a safe option offering fixed interest rates, making it possible to calculate the exact returns you can earn once the deposit matures.
Now, many banks offer fixed deposits.
Before opening a fixed deposit with a bank, it is essential to know what others are offering. This ensures you are not losing out on another deal with better terms. Here is a list of banks that provide the highest FD interest rates.
- IDFC FIRST Bank
IDFC FIRST Bank offers fixed deposits with interest rates up to 6.50% per annum. IDFC does not charge any penalty for senior citizens withdrawing funds from their fixed deposits before maturity. Regarding payouts, you can choose the quarterly compounding or set up a monthly/quarterly payout option.
- HDFC Bank
Customers opening fixed deposits at HDFC bank can get FD rates up to 6.25%. HDFC Bank offers fixed deposit tenures ranging from 7 days to 10 years. You can also get up to 90% of the fixed deposit amount as an overdraft.
- Kotak Mahindra Bank
Kotak Mahindra Bank offers fixed deposits with interest rates up to 6.03%. Kotak offers fixed deposit interest rates of up to 6.56% for senior citizens. You can get tenure options that start from 7 days to 10 years. You can choose to receive interest monthly or quarterly or let the interest accumulate till maturity.
- ICICI Bank
If you are opening a fixed deposit in ICICI Bank, you can get an interest rate of up to 5.75%. If you are a senior citizen, you can get an interest rate of up to 6.5%. ICICI Bank offers overdraft against fixed deposit of up to 90% on principal plus interest gathered.
Lastly, note that the interest rates that banks offer will depend on the amount you are depositing. The tenure you choose will also influence bank FD interest rates. So, check the difference in rates with varying amounts and tenures.
Check the interest rate table on each bank’s website to complete your research. This will help understand which bank offers the best deal regarding opening a fixed deposit. Also, check with the bank regarding the exact penalty charges for premature withdrawals.
