A fixed deposit is one of those stable schemes which can benefit you in the long term. It is one of the few investment vehicles which is not affected by the markets ups and downs thus giving the investor an assured return. With so many fixed deposit schemes, it can be a hassle to pick the one that works best for you.
FD interest rates vary depending on tenure, deposit amount, senior citizenship, and several other parameters. Find out the best FD interest rates available from non-banking financial institutions and banking financial institutions. Take your pick from some of the best FD schemes available in the country with premature withdrawal provisions.
There are multiple schemes offered by both banking and non-banking institutions. Here’s a list of the best schemes you can get your hands on.
Non-Banking Financial Companies
Two top NBFCs offer high returns on fixed deposits.
- PNB Housing Finance – Offering one of the highest tenure periods, this NBFC offers interest rates starting from 8.25% to 8.45%, which is subjected to be lower or higher depending on the amount and tenure.
- LIC Housing Finance– For tenure of 1-5 years, considerably lower than most other financial institutions, the fixed deposit scheme here offer interest rates ranging between 7.8% to 8.0 %.
The interest rates do vary from one financial institution to another and on certain other parameters. Only a few banking and non-banking financial institutions offer fixed deposit schemes extending to a period of 10 years.
Although in case of a long tenure, the interest rates may vary from 7-8% or higher, such long period schemes are safer and more secure than short term high interest rates.
Once you have a lump sum of money deposited in a long-term scheme, you can hope to double your deposit. Most of these institutions offer online calculators to check the highest return on FD you can get with their respective schemes.
Besides this, the banking institutions also offer a fixed deposit scheme but at a comparatively lower interest rate.
- SBI – It offers an interest rate ranging between 6.50% for general citizens and 7.00% for seniors.
- ICICI – This banking service provides 7.00% interest for general citizens and 7.25% for senior citizens.
- Axis Bank – It offers 7.25% interest to senior citizens and 6.75% for general citizens.
If you run a comparative study for non-banking and banking institutions, the results are pretty clear. NBFCs can offer some of the highest returns on FD schemes possible. When you are taking your pick from non-financial institutions, you should go for a long tenure of more than five years; this way, you can enjoy a great interest for an extended period and also wait for your FD to double in amount.
It’s best to check for security policies and institutions that offer premature withdrawals at lower rates just in case you need to withdraw the amount deposited in case of an emergency. Additionally, many financial institutions provide the option of a loan against the FD if the need arises.