A Big Hello to our Readers. Have you ever wished to have a common web site where you can find important financial data like Fixed Deposit Interest Rate ( FD interest rates ) of different banks very easily without surfing numerous bank sites?
If your answer is ‘yes‘ then you are in the right place.
Here we will try to accommodate the listing of fixed deposit rates of selected banks and will try to keep them updated as much as possible for the convenience of our readers.
Here you will get a view of SBI FD interest rates, HDFC FD interest, FD rates of BOI, PNB, ICICI Bank, UBI, etc. An effort will be there to keep these as updated as possible, but considering frequent modifications of FD rates if you find any gap in updates, you may contact us through mails.
Fixed Deposit Rates – why FD Rates are important?
Now many of us may raise a question, “Why FD rates ?”
For them, our answer would be like this.
In this world our money should be at safe hands – that is probably most of us wish always. Many of us believe that our hard-earned money should continue to earn a decent rate of interest without much uncertainty or unpredictability. Now let’s see how FD comes here to help us.
Fixed deposit interest rate – what is a fixed deposit?
Fixed Deposit in Banks is such a financial instrument that gives a certain percentage of interest for the fixed deposit for a given amount of money deposited for a certain period of time.
In other words, a Fixed deposit is a type of investment mechanism offered by banks and non-banking financial companies.
Here we can deposit money for a higher rate of interest than savings accounts. We can deposit a lump sum of money in a fixed deposit for a specific period, which varies for every financier.
Once the money is invested with a trusted financier, it starts earning an interest based on the duration of the deposit and the rate of interest. Usually, one of the prime features of FD is that the money invested cannot be withdrawn before the maturity date, but you may withdraw them after paying a penalty. This penalty amount depends on the specific bank policy.
Fixed Deposit: No surprise for the Investor:
When a person invests money in an FD, he/she knows what is the interset rate this investment is going to earn.
The investor also knows how long this money will remain invested with the financial institution concerned and what the maturity date is.
The FD interest rates may change from time to time depending on Bank Management decisions.
But the new rates don’t affect the already running FDs i.e. the FD interest rates working upon already deposited FDs remain unchanged till their maturity.
Modified rates are applicable for new FDs made after the rate modification and for the renewals only.
Interest for fixed deposit
Some people say that the Interest for fixed deposit is lower than some other financial instruments available in the market, but considering the security of the money invested many people prefer to keep their money as Fixed Deposit in dependable banks.
And the number of such people is not less.
To address their requirement to have a commonplace or platform to find some relevant information about the fixed deposit rate of interest this website can help a lot, we believe.
Fixed Deposit – important pointers
1>Fixed deposits are deposits where a particular sum of money is invested for a fixed duration.
2> Investor has to select a duration for the investment from a set of durations of Fixed Deposits available with the bank. Option for duration can range from a few days (like 7 days) to 10 years.[Durations available depend on the Banks or the financial institutes concerned].
3>The Fixed Deposit rate of interest depends on the period for which the funds are fixed. Also, different banks may offer different FD interest rate for a given time duration.
4>Fixed Deposit amount cannot be withdrawn until the maturity period by default. Premature withdrawal may be allowed after the bank charges a penalty in the rate of interest for a fixed deposit.
5>We can deposit money in a specific fixed deposit account only once, but to deposit more money, we need to create another FD account.
6> Renewal of Fixed Deposit is possible. Many banks offer auto-renewals as well.
7> Tax is deducted at source (TDS), from interest on Fixed Deposit as applicable, as per the Income Tax Act, 1961. This can be avoided (only the TDS part with the bank for the concerned FD account) by submitting specific declaration forms to the banks concerned.
* If income is taxable, then this form submission doesn’t enable anybody to skip tax to be paid.
8> Option for periodic interest payouts (say, monthly payout schemes) may be available to help an investor to manage the monthly expenses.
9> Market fluctuations on a running fixed deposit don’t have an effect which means greater safety of the investment capital.
10>Some financiers also provide higher FD interest rates for senior citizens.
11> Some banks even offer a special rate of interest for their staff and pensioners.
12> Banks can offer different sets of FD interest rates if the invested amount is more than a fixed amount. Say for a bank if the FD amount is 2 crores or more for the domestic investment then there will be a different set of FD rates. Similarly, NRO FD(Fixed Deposit account of a Non-resident Indian in a bank in India) can have a different set of FD rates and different sets of policies. Example: SBI
What you may check with the financial institute you visit before opting for an FD
If you are a senior citizen then make sure to mention that to get the extra benefit, if available. Also ask them if there is any condition to avail that like the minimum amount of deposit, the minimum duration of investment or being the first holder of a joint account, etc.
If any such scheme is there and you are eligible for that then certainly you should mention that.
You can discuss the periodicity of the interest payment you prefer to have and the available options.
You can ask about the TDS ( Tax Deducted at Source) on the interest. And you may ask about the declaration form you have to submit if you want to avoid this TDS.
You may ask about the penalties or other rules/policies for Premature closure and partial withdrawal.
You should talk about the nomination facility and provide the information in the application form. It’s important.
You should ask about the loan facility in detail as you never know when due to some urgency you may need money.
A certain percentage of the deposit may be available as a loan.
You may discuss and decide on this option. In your FD application form, you may find it. Provide a proper option.
You may ask for the FD application form if you agree to open an FD. Also please check about the required documents you need to carry to support the application form while opening the FD.