Fixed deposits are among some of the safest investment options provided by every bank in the country. The fixed deposits give you a special interest rate for senior citizens, no market risks, multiple interest payment options, and income tax deductions. The fixed deposits of India are the complete investment package that ensures the compounding of your savings.
Most of the top bank FDs in India offer high interest rates, and some have remarkable conditions that make them exceptionally beneficial.
Best Bank Fixed Deposits and Interest Rates in India
Every bank provides fixed deposits, but the deposits that have the best interest rates and benefits in the country include the following:
IDBI Bank Tax Saving FD
The IDBI bank tax saving fixed deposit comes with high returns on your investments and tax exemption under section 80C of the Income Tax Act. IDBI bank provides a great banking experience where you can invest up to Rs. 1.5 lakh for 5 years. At the end of the five years, you can get your matured lump sum as savings, and then you can also apply for any kind of loan with minimum paperwork with the bank.
Interest Rate: 6.10% to 6.85%
IDFC First Bank Tax Saving FD
The IDFC First Bank tax saving fixed deposit provides you with a risk-free and safe investment that has a competitive interest rate. With the fixed deposit of IDFC First Bank, you can make early withdrawals if you are a senior citizen, and you will not be penalized for it. Moreover, you also get the benefit of having a flexible tenure where the minimum is seven days, and the maximum is ten years. With such flexibility, you will not be concerned about market fluctuations affecting your deposit since you can make your money grow for the long term.
Interest Rate: 6.50% to 7.50%
Axis Bank Tax Saver FD
The Axis Bank tax saver fixed deposit is among one of the top bank FDs in India. You can make a lump sum investment with the tax saver and invest a minimum of Rs. 100 and a maximum of Rs. 150,000. The tax saver fixed deposit comes with three different options: you can reinvest the deposit, have tax savings or quarterly interest payout, and the monthly interest payout depending on the payout that is most suitable for you. You can invest in Axis Bank tax saver FD with a tenure of 5 years and enjoy its benefits for that period.
Interest Rate: 6.10% to 6.85%
IndusInd Bank Tax Saver Scheme
The IndusInd Bank tax saver scheme gives you all the advantages of tax benefits while delivering steady returns. Such a secure investment will allow you to save from taxes and maximize your financial resources. The IndusInd Bank tax saver scheme provides several benefits and ensures you can keep your wealth growing with its high interest rates.
Interest Rate: 6.75% to 7.50%
HDFC Bank Tax Saver FD
The HDFC Bank tax saver fixed deposit has many features that put it among the top bank FDs in India. First, it provides a tenure of 5 years that locks in your investment till it matures. It has a minimum amount of Rs. 100 and multiples of Rs. 100. However, the maximum amount is Rs. 1.5 lakhs in a financial year, and you can book this deposit for quarterly and monthly payout. Even though HDFC’s fixed deposit is meant to save your taxes, it still has a TDS if your interest payable is over Rs. 40,000 in a financial year. Hence, you need to be careful with the conditions of HDFC Bank tax saver FD before you invest in it.
Interest Rate: 6.10% to 6.60%
Canara Bank Tax Saver FD
The Canara Bank tax saver fixed deposit is similar to other fixed deposit schemes regarding the tenure, maximum, and minimum amount. However, you could have its discounted monthly and quarterly payments. At the same time, the fixed deposit cannot be used as collateral or security for any loan. Hence, if you plan on taking a loan against your fixed deposit, then you may go through some other fixed deposit schemes before deciding on the one you want to invest in.
Interest Rate: 6.50%
Characteristics of Fixed Deposit Schemes
Fixed deposits are attractive for various reasons, and certain aspects help you recognize the top bank FDs in India. Therefore, you can go through the characteristics of fixed deposit schemes given below to comprehend what makes them a great investment option.
- You can earn interest over a specific length of time.
- Fixed deposits are more secure than many other investment choices.
- There is no maximum deposit amount fixed for certain schemes.
- Senior citizens get high-interest rates with many other perks and benefits.
- You can let a fixed deposit mature on your chosen tenure, which can be anywhere from three years to ten years.
Benefits of Investing in Bank’s Fixed Deposits
Fixed deposits come with several benefits that are advantageous over the long term. You can familiarise yourself with some of the benefits below to understand the difference the top bank FDs in India make in your investment journey.
Surety at Maturity
When investing in the fixed deposits of different banks, you get the guarantee of receiving your initial invested amount along with the collected interest at the closure of the term. Such a surety makes fixed deposits a much more viable option for investment.
Guaranteed Returns
With fixed deposits, you will get your interest determined at the beginning of the investment. And you can receive the interest irrespective of how the market changes and the economy performs.
Conclusion
Fixed deposits are the solution to your investment woes when you cannot decide where to put your money and which will give positive returns. Fixed deposits meet all your expectations and more when they give you flexible payment options and high-interest rates that compound your investment every financial year. Therefore, you can go through the top bank FDs in India to discover the fixed deposit you want to invest in and then fill in the necessary application.