5 Best Fixed Deposits with Higher Interest Rates

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Fixed deposit is the most preferred and popular deposit scheme because of the safe and secure nature of the investment.

Fixed Deposit interest rates depend on the Reserve Bank of India (RBI) monetary policy, including repo rate, base rate, etc.

Fixed Deposit? What is That?

Fixed deposits are financial instruments offered by banks and financial institutions or non-banking financial institutions. The account can be opened for a fixed period by depositing an amount of money. The deposited amount is repayable on maturity. Investors can withdraw the money before maturity, but they will be penalized for early withdrawal.

The Top-5 FDs in India Offering Highest Interest Rates

1. PNB Housing Finance Fixed Deposit

PNB Housing Finance is one of the largest housing finance companies in India.

Here are some features of PNB Housing Fixed Deposit:

  • The interest rates can go up to 6.95% per annum.
  • You can invest from a lowly INR 10,000.
  • PNB Housing Fixed Deposits are very stable. The CRISIL rating is FAA+/Negative, and the CARE rating is AA/Stable for the fixed deposit, which indicates a high level of safety.
  • Senior citizens can get a 0.25% higher interest rate.
  • Nomination, auto-renewal, and auto-maturity facilities are available free of cost.
  • PNB Housing has over 100 branches across 35 cities in India, so their network is easy to reach.
  • No TDS deduction on interest up to INR 5,000 p.a.
  • In case of premature withdrawal within six months from the date of deposit, the highest FD interest rate will be 4% per annum. After six months, interest will be 1% less than the initial rate.
  • The tentative yield to maturity can be as high as 9.13%.
                                                               Photo by cottonbro from Pexels

2. ICICI Bank Fixed Deposit

ICICI Bank is a world-class private sector bank in India.

Here are some features of ICICI Bank Fixed Deposits:

  • The minimum amount of deposit is between INR 10,000 and 15,000.
  • The highest FD interest rate offered by ICICI bank is 5.50%.
  • Senior citizens can get up to a 0.30% higher interest rate.
  • Auto-renewal and auto maturity facilities are available free of cost.
  • In case of premature withdrawal, a 1.30% penal rate is applicable.

3. SBI Fixed Deposit

SBI is the largest government-run financial organization.

Here are some features of SBI Fixed Deposits:

  • The minimum amount of deposit is equal to or above INR 5,000.
  • The highest FD interest rate offered by SBI is 5.40%.
  • The period of deposit is a minimum of 5 years and a maximum of 7 years.
  • A nomination facility is available.
  • TDS is applicable.

4. Axis Bank Fixed Deposit

Axis Bank is another leading private sector bank in India.

Here are some features of Axis Bank FD:

  • INR 5,000 is the minimum amount of deposit.
  • The highest FD interest rate offered by Axis Bank is 5.75%.
  • TDS is applicable.

5. HDFC Bank Fixed Deposit

HDFC Bank is also one of the largest private sector banks in India.

Here are some features of HDFC Bank FD:

  • The highest FD interest rate offered by HDFC Bank is 5.50%.
  • For senior citizens, there is a 0.25% higher interest rate.
  • TDS is applicable.
  • In case of premature withdrawal, interest will be 1.25% less than the initial rate.

Conclusion

Fixed deposit interest rates can change at any time. As an intelligent investor, you must check all the terms and conditions before investing money.

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