Updated on: 29 Jan 2024 | 5 min read
Are you looking for a safe and reliable investment option for 1 year? Then you should delve into these top 5 Fixed Deposit (FD) options. These FDs offer diverse features and advantages, ensuring promising future returns and financial stability. For more details, let's read the blog to find the most suitable option.
Fixed Deposit (FD), also known as Term Deposit, is an investment avenue available through banks and financial institutions. Here, the depositor deposits the lump sum of money in the bank account for a fixed period of tenure and bank/financial institutions give interest on the same. FD offers higher interest rates than saving accounts and comes with various features such as loans against FD, Overdraft facilities, premature withdrawals, credit cards against FD, etc. Commonly preferred, FDs provide a reliable means to secure savings and earn predictable returns on investments.
S.No | Name of Bank/NBFC | Interest Rate for General Citizens | Interest Rate for Senior Citizens |
---|---|---|---|
1. | DCB Bank | 7.15% | 7.65% |
2. | Karur Vysya Bank | 7.00% | 7.40% |
3. | Karnataka Bank | 6.95% | 7.35% |
4. | Canara Bank | 6.85% | 7.35% |
5. | Punjab National Bank | 6.75% | 7.25% |
Fixed Deposits (FDs) stand out as a trusted choice for many Indians seeking a stable source of income. Choosing the ideal FD scheme for a one-year term involves considering interest rates, tenure flexibility, liquidity, and perks. The top five analysed schemes present diverse benefits, catering to varied investor preferences. Whether prioritising high-interest rates, flexible terms, or personalised needs, these schemes offer a range of options, aiding investors in aligning choices with their financial objectives.
Yes, you can open the FD online either by using a banking app or internet banking.
Yes, FD can be renewed either by using an auto-renewal facility or by instructing the bank to renew the FD. But FD cannot be renewed after the maximum period.
Yes, you can break the FD before maturity, but you have to pay a premature withdrawal penalty.
The minimum amount to open an FD varies from bank to bank; it starts from ₹ 100/- and goes to ₹ 10,000/- for some banks.
Yes, NRIs can open an NRE FD account for 1 year.