Fix it up Perfectly For a Sound Future
The shocks of the stock markets are not for the faint-hearted. Mutual Fund schemes are subject to market risks, as is any investment whose performance is linked to the market upheavals.
For rock-solid steady returns, you must stick to the age-old Fixed Deposit schemes in India.
You just need to fill in the KYC (Know-Your-Customer) Form, deposit the money, and then sit back with your feet up. It is called a Fixed deposit investment because the Rate of Interest at which you deposited remains fixed throughout the duration of the deposit. Your investment is totally shielded from any rate changes that may be effected later. Like clockwork, your investment would grow by the miracles of Compound Interest.
And if you are a Senior Citizen, the Rate of Interest is marginally higher. Ask about Special Categories of Rate of Interest before investing.
Where to open a Fixed deposit?
There are multiple institutions that offer you the best Fixed Deposit scheme in India. You could open a Fixed deposit with:
What will be the taxes?
Is duration pertinent?
It is, mostly. Normally, the rate of interest goes higher as the duration of your Fixed Deposit rises. Indian banks tweak this methodology though. Their interest rates rise upto 1 year deposits, and thereafter taper off. So, do read their Rate of Interest Tables carefully.
What you could do with such bank Fixed Deposit investments is make a 1-year deposit, and then take a call on reinvesting after that duration.
However, if it seems that in the future the Rate of Interest might dip lower, then it makes sense to make a FD investment of a longer duration.
Is Rate of Interest the most important factor?
Not really! There are a variety of FDs on offer, and you must understand the terms before putting your money down for investment. If you have two schemes with the Rate of Interest and all parameters same, the only difference being the Compounding Frequency, then the one which compounds more frequently will give you a better return.
We've compiled the Best Fixed Deposit Scheme for different durations for you.
If you can set money aside for 3 Months, or even 6 months, then ING Vysya Bank offers the highest rate of interest at 8.8%.
For 1-Year duration, nobody can outmatch DHFL, which offers 9.73% return on your investment. And even on Fixed Deposits of duration of 2 Years, DHFL gives you an unbeatable 10.49% rate.For a Fixed deposit duration ranging from 3 to 5 years, the best rates are from Shriram Transport Finance. For 3 years, your deposit will earn an interest of 11.65%. The same amount will earn you 12.28% in 4 Years, or 12.96% in 5 years.
Now go ahead, plan your future. Invest in the best fixed deposit in India that meets your requirement.