Don’t just keep your spare money in the bank but Grow Your Spare Money In Account by investing Bank FD [Fixed Deposit]
Fixed deposits [FD] are offered by banks in helping the bank account holders getting a higher rate of interest than regular savings on the maturity date for which it was kept, its similar to keeping the lumpsum amount in case of mutual funds but safer when compared to mutuals, as you are aware of the final amount on maturity.
To start the FD person needs not require the creation of a separate account but the investors with a bank account can start the FDs within their own bank.
You can apply for the FD online or by visiting your bank.
Withdrawal of money from the fixed deposits in India before maturity?
- FD’s withdrawal before maturity, the principal amount with a lower interest rate or after deducting a penalty amount will be charged from the total amount.
- The recent update from RBI, banks can also offer fixed deposits [FD] with lock-in.
- The banks may refuse any withdrawal of money before the maturity of FD for which it was started.
Similarly if looking for more FD options then, the investors can also start post office fixed deposit after checking online, post office FD interest rate 2020, Usually Post office interest rates are more when compared to the bank FD’s but still depending on bank to bank.
Now many of you might be thinking whether fixed deposit [FD] in a bank is safe or not?
The Bank Fixed Deposits [FDs] are generally safe investments as the FDs up to Rs 1 lakh are insured under the Deposit Insurance & Credit Guarantee Scheme of India.
Before investing remember that the interest rates for all the banks are not the same but it also differs from bank to bank for both FD and RD [Recurring Deposit].
A minimum and Maximum amount, duration differ from bank to bank, the amount can be minimum Rs.1,000 and the maximum amount in a year is Rs. 1.5 lakhs for the duration of months and years up to a maximum of 10years for most of the banks, unlike mutual funds which can be kept for a long duration.
Fixed deposit features:
- Fixed sum amount on maturity.
- Lower risk, almost no risk like in liquid mutual funds.
- Fixed-rate of interest but mutual fund varies with the market.
- Returns are less compared to equity funds.
- FD tenures of up to 10 years.
- There’s no cap on the maximum amount to deposit.
Fixed Deposit Interest Rates by Top 10 Banks in India (Source: bankbazaar)
|Name of Bank||For General Citizens||For Senior Citizens|
|State Bank of India||5.00% to 6.80%||5.50% to 7.30%|
|ICICI Bank||4.00% to 7.10%||4.50% to 7.60%|
|HDFC Bank||3.50% to 7.30%||4.00% to 7.80%|
|Punjab National Bank||5.00% to 6.75%||5.50% to 7.25%|
|Canara Bank||5.00% to 6.50%||5.50% to 7.00%|
|Axis Bank||3.50% to 7.20%||3.50% to 7.85%|
|Kotak Mahindra Bank||3.50% to 6.90%||4.00% to 7.40%|
|Bank of Baroda||4.50% to 6.60%||5.00% to 7.10%|
|IDFC Bank||4.00% to 8.50%||4.50% to 9.00%|
|Bank of India||5.00% to 6.50%||5.50% to 7.00%|
All these things you should know while starting the Fixed Deposit in India and if any doubt ask but never stop learning #knowandask
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