The interest rates on fixed deposits have witnessed a significant increase in recent years due to reverse regime of interest rates and these interest rates are definitely expected to increase in near future.
In present scenarios we all try to invest in some or the other way and if you are one of them who wants to invest in fixed deposits, then this may be a right time to move ahead and deposit in FD of your choice. However, the highest interest rates offered by the major banks are around 7% p.a. In fact currently, the interest rates offered by smaller banks go up to 9% p.a. Even the interest rates for senior citizens are higher by 0.25% – 0.75% compared to the rates offered to the regular depositors.
Among all the depositing instruments, fixed deposits score the highest in terms of income certainty and safety of the hard earned and saved money. The best part of fixed deposits is the interest rates; the interest rates do not change throughout the term despite of any changes in the rates in the interim. However, a premature withdrawal attracts a sharp penalty rates.
These days, other than Banks, the facility of fixed deposit is also offered by NBFC’s and small finance Banks and their interest rates are quite higher than those offered by the Banks. Though, there are lot of risks involved too but whatever the case is the following table shows the FD schemes of Banks/ NBFC’s and Small Finance Banks.
However, while depositing your money in FD’s, you should not only consider the current interest rates but also the profile of the depositor as you have to be sure about the safety of your money. There are many other options where you can invest and get good returns. So, if to get a good return on your money is the only criteria, then why to invest in FD at all?