Best 5 Fixed Deposit Schemes for 2 years

A Fixed Deposit (FD) is a type of investment offered by banks and financial institutions, where an investor deposits a lump sum of money for a fixed period, typically ranging from a few months to several years, at a fixed rate of interest. The interest rate on FDs is generally higher than the interest earned on savings accounts, and the longer the term of the FD, the higher the rate of interest tends to be. A Fixed Deposit, also known as a Term Deposit as the investor can choose a period for FD, which can range from a minimum of 7-14 days to a maximum of 10 years.
FDs are considered low-risk investments because the returns are fixed and guaranteed by the bank or financial institution. They are a popular choice for people who want to earn a fixed return on their savings without exposing themselves to market risks.

• One of the key features of an FD is that it offers a fixed rate of interest for the entire duration of the investment. 
• FDs have a fixed tenure, which can range from a few months to several years. You can choose a tenure that suits your investment goals at the time of making FD.
• Banks and financial institutions have a minimum investment amount for FDs. This can vary from bank to bank and can be as low as a few thousand rupees.
• The interest earned on FDs is taxable as per the Income-tax Act,1961 (The Act). However, senior citizens can avail of higher interest rates and tax exemptions on the interest earned.
• At the end of the tenure, you can choose to renew the FD for another term or withdraw the investment.
• In case of urgent need of funds, the investor can avail loan against FD. It can be up to 95% based on the Bank’s policy. 
• FDs allow you to nominate a person who will receive the investment and interest in case of your untimely demise.
• Some FDs have a lock-in period, during which you cannot withdraw your investment without incurring a penalty. However, most banks and financial institutions allow premature withdrawal in case of an emergency, subject to certain terms and conditions.

Suryoday Small Finance Bank

• Introduction: Suryoday Small Finance Bank is a new-age bank that took effect on January 23, 2017. The bank aimed at providing banking services to the ‘banked’, ‘under-banked’ and ‘unbanked’ sections of society. Till now, the bank has 289 branches in 8 states in India. Suryoday is the first small finance bank to obtain a licence from the Reserve Bank of India (RBI) in Maharashtra.
• Feature: The FD is available in traditional or cumulative plans. The auto-renewal facility is available with premature withdrawal. The FD can be opened for a period of 7 days to 10 years. 
• Interest Rate: The interest rate for 2-year FD is 8.5% for non-senior citizens and 9.00% for senior citizens. 
• Minimum and Maximum Deposit: The minimum Deposit is ₹ 1000/- and as such, there is no limit for the maximum deposit. 

Utkarsh Small Finance Bank

• Introduction: Started as a Micro Finance Institution (MFI) with four branches, a client base of 8000 and an outstanding portfolio of ₹6.3 crores, Utkarsh Micro Finance converted into Utkarsh Small Finance Bank. It commenced its banking operations as a small finance bank in 2017. By 2020, the deposit base crossed ₹5,000 crores and had 500 banking outlets.
• Feature: FD at Utkarsh Small Bank has features of interest payment options that can be availed monthly, quarterly or at maturity. The FD can be invested for a period of 7 days to 10 years. The senior citizen can avail higher interest rates. FD can be accessed from anywhere using an online net banking facility. 
• Interest Rate: The interest rate for non-senior citizens for two years tenure is 8.25% and for senior citizens 8.85%.
• Minimum and Maximum Deposit: The minimum Deposit is ₹ 1000/- and the maximum deposit is no limit.  

DCB Bank

• Introduction: DCB Bank, a modern private sector bank, boasts 439 branches throughout India, regulated by the Reserve Bank of India. With a customer base exceeding a million, it operates in various segments, including Retail, micro-SME, and Agriculture. The bank, backed by contemporary technology, offers Internet banking and caters to diverse sectors like Government, Co-operative Banks, and NBFCs. Established in the 1930s, it's supported by the Aga Khan Fund for Economic Development (AKFED) promoting entrepreneurial ventures worldwide.
• Feature: The bank provides an attractive interest rate with higher interest rates for senior citizens. There is a flexible interest payment option. The tenure of FD ranges from 7 days to 10 years. Auto renewal facility with the facility of loan against FD and overdraft against FD is also available. 
• Interest Rate: The interest rate for non-senior citizens is 7.55% and for senior citizens is 8.05%.
• Minimum and Maximum Deposit: The minimum deposit is ₹ 10,000/- and there is no maximum limit.

IndusInd Bank

• Introduction: IndusInd Bank stands as a premier financial services brand in India, serving around 37 million customers, ranging from individuals to government bodies and PSUs. With a vast network of 2631 branches, 2903 ATMs across 1,43,000 villages, and representative offices in London, Dubai, and Abu Dhabi, the bank caters to diverse banking needs. Its offerings include microfinance, personal and commercial loans, credit cards, and SME loans for individuals and corporations.
• Feature: IndusInd Bank FD can be booked in easy steps and even online. They give higher interest rates and flexible interest payment tenure. 
• Interest Rate: The interest rate for non-senior citizens is 7.5%, and for senior citizens is 8.25%. 
• Minimum and Maximum Deposit: The minimum deposit amount for opening an FD account is ₹ 10,000/-. 

Sundaram Finance

• Introduction: Sundaram Finance is a prominent member of the TSF group and was established in 1954. It started with the objective of financing the purchase of commercial vehicles, and today has grown into one of the most trusted financial services groups in India. 
• Feature: The deposits of Sundaram Finance have been AAA-rated for the past so many years. The company provides the facility of loan against FD, nomination facility and premature withdrawal subject to rules and penalty. 
• Interest Rate: The interest rate for the no-senior citizen is 7.75% and for senior citizens are 8.25%
• Minimum and Maximum Deposit: The minimum deposit of the FD is ₹10,000/- and there is no specific mention of the maximum deposit. 

Fixed Deposits is one of the most trusted investment options among the Indian citizens. People who are looking for a safe and steady income choose FD as an option. Choosing the right fixed deposit scheme for a two-year tenure requires a careful assessment of various factors such as interest rates, tenure flexibility, liquidity options, and additional benefits. Among the top five schemes analysed above, each offers unique advantages, appealing to different investor needs. Whether aiming for higher interest rates, flexible terms, or catering to specific preferences, these schemes provide a spectrum of choices, enabling investors to make informed decisions aligned with their financial goals.