What is a Fixed Deposit & how to invest money?
We need money to fulfil the basic requirements to lead our lives. We look for plans with attractive interest rates and higher returns if we talk about saving plans. That’s why people are opting for Fixed Deposit plans for future savings. Fixed Deposit is a scheme offered by the banks and other financial partners registered with RBI.
It has easy eligibility criteria; anyone can easily opt for it. It gives high benefits like flexible tenor, attractive FD interest rates, higher returns, rebate in Tax, easy payouts, and many more. Here we’ll talk about the interest rates offered by Fixed Deposit schemes, and we’ll see the comparison part, which will be helpful for us to choose wisely.
Best Fixed Deposit Schemes with Highest Interest Rates
Here we’ll see the list of the best-fixed deposit schemes offering attractive interest rates. This analysis is based on March 2022 to see what is latest going on in the finance market to make a beneficial investment. All these schemes are for a tenor of three years.
- Fincare Small Finance Bank
- Fincare offers an attractive rate of interest of 6.30% p.a. for the general public and 6.80% p.a. for senior citizens above 60 years.
- The bank provides several flexible interest payout options and premature withdrawal options.
- The interest rate is 6.00% p.a. for the general public and senior citizens; it is 6.25% p.a.
- All fixed deposit schemes come under TDS.
- The bank is offering Periodic Interest Payment Schemes and Money Multiplier Schemes.
- Shriram City
- For cumulative deposits, the interest rate is 8.84% p.a. for the general public and 9.24% p.a. for senior citizens.
- For non-cumulative deposits, the general public is getting 8.15% p.a. and 8.55% p.a. for senior citizens.
- Mahindra Finance
- Mahindra Finance has a Samruddhi Deposit scheme, where the rate of interest is 6.30% p.a. for general people, and for senior citizens, they are offering 0.25% higher.
- Multiple payout options are available.
- Sundaram Finance
- An interest rate is 6.25% p.a. for general people and 6.75% p.a. for senior citizens.
- Nomination facility and premature withdrawal facility are available.
- The bank offers an interest rate of 4.75% p.a. to the general public and 5.25% p.a. to senior citizens.
- The premature withdrawal facility is available with a penalty fee of 1%
- Deposits above Rs. 1 crore do not come under penalty fees.
- Equitas Small Finance Bank
- The bank is offering the rate of 6.00% p.a. for the general public and senior citizens; it is 6.50% p.a.
- The bank is also offering the facility of premature withdrawal.
- YES Bank
- YES Bank offers a special interest rate of 6.50% p.a. for the general public and senior citizens; the interest rate is 7.00% p.a.
- The bank is offering one more reinvestment facility for a minimum of 6 months, one day.
- Canara Bank
- Canara Bank offers a rate of 5.25% p.a. for the general public and 5.75% p.a. for senior citizens.
- Bank offers a premature withdrawal facility.
- There is a penalty fee of 1% on premature withdrawal on deposits below Rs. 2 crore
- Punjab and Sind Bank
- For the general public, the rate of interest is 5.30% p.a.
- For senior citizens, 5.80% p.a. is the interest rate.
How does Fixed Deposit Compound Interest Calculator work?
It is always advisable to check how the interest is calculating against our investment or fix the deposit amount. Here we can take help from the fixed deposit compound interest calculator. It’s an easy method to calculate interest. The interest is calculated by multiplying the principal, interest rate, and tenor. The formula for Simple Interest (SI) is “principal x rate of interest x period divided by 100” or (P x Rx T/100).
In short, after the analysis, we conclude that banks and other financial companies have tremendous benefits and higher return schemes. We need to explore a bit and choose the best-fixed deposit scheme. The rate of interest we get on our investment plays a unique role to multiply our savings. We also get many other benefits like easy withdrawals and easy access to our Deposit.