Fixed Deposit Interest Rates

Fixed Deposit Interest Rates in India

While savings accounts are known to be the most common types of accounts, fixed deposits have been known to be one of the most popular methods of getting a higher rate of interest. Also known as term deposits, these accounts offer different levels of liquidity.

They have been commonly associated with preferred long term options of storing one’s finances. Fixed deposits can be opened at every type of bank in India.

These types of bank accounts are characterised by a fixed rate of interest; that is guaranteed for the nominated term period. Here, a person knows what their investment worth is. The interest rates are generally higher for senior citizens; by approximately 0.25%. The term of these fixed deposits may vary from 7, 14 or even 45 days to a maximum of 10 years.

You can have this fixed deposit either for a short-term or for a long-term, depending on what your investment goals are. However, one thing remains constant and that is the fixed rate of interest. Therefore, a person can expect to receive the same interest throughout the duration. However, a person holding such a deposit cannot benefit from high interest rates. This is one of the main risks’ that is associated with such an account. Investors face the opportunity to invest in an instrument that has a higher return.

It is easy to avail these accounts online where they can compare the different fixed deposit interest rates that are offered by different banks. There are different interest rates that are available for NRI’s (Non-Resident Indians) as well. These accounts are risk-free and known to be safe havens for investment of one’s funds, while at the same time having it grow as well. Usually, this interest is paid on a monthly, quarterly or even annual basis.

However, one factor remains common; that is the money cannot be withdrawn from this deposit during its tenure until its maturity. There are various different provisions for making pre-mature withdrawals. These often involve the payment of different penalty charges though.

The fixed deposit calculator is one of the online tools that can be used to help a person get the return on the principal when the interest is paid on quarterly compounding. By entering in different details such as principal amount/deposit amount, interest rate and the period of deposit (in months) it is easy to make easy calculations for the total interest that will be received as well as the total maturity amount. These online tools are easily available online via different websites of banks or simply searching via different search engines.

One of the main reasons why people invest in these accounts is because of the safety of the principal amount. It is known to have the highest safety as compared to other investment options in India. These accounts are known to have no upper limits to them and can even start from very low amounts. However, beyond a certain amount (as per bank) the bank may require your PAN card details.