Best Interest Rates On Fixed Deposit In Private Banks

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    Savings is an important aspect of each and every individual's life. It teaches us how to use money in a sensible way and helps us to understand the true value of money. Savings is considered to be a very good habit, apart from providing security it helps individuals to face uncertain future events wherein it provides immediate access to money.

    Best Interest Rates On Fixed Deposit In Private Banks

    In today's developed world there are various ways through which an individual can save the money.

    The following are the various investment options through which an individual can save his/her money- Public Provident Fund, Mutual Fund, Equity Shares, Fixed Deposits in Banks, Real Estate Investment, Gold ETF, Post Office Schemes, Company Fixed Deposits and so on.

    Let's see at a glance as to what the fixed deposits in bank means and the best list of private banks which offers fixed deposit schemes at an attractive rate of interest.

    What is a Fixed Deposit?

    Fixed Deposit is a kind of financial instrument offered by banks or Non-Banking Financial Institutions which provides investors a higher rate of interest over the regular savings account.

    The term fixed deposit indicates clearly, that the deposit is for a pre-determined fixed period of time which ranges from 7 days, 15 days, 45 days, 180 days, 1 year, 2 years, 5 years up to a maximum of ten years. An individual can deposit the money in the account over a fixed period of time as per his/her personal requirements.

    These kind of investments are safe as they are covered by the deposit insurance and credit guarantee corporation. Some deposits provide income tax benefits and wealth tax benefits as well.

    The principal amount will fetch interest either on a quarterly or half-yearly or on a yearly basis. The accumulated interest amount along with the principal amount will add up to the maturity amount, which the investor will be eligible to withdraw at the time of maturity of the fixed deposit.

    The rate of interest on the fixed deposits in India will be decided by Reserve Bank of India and all the other banks have to follow the suit as set by the Central Bank.

    Fixed deposits will have a lock-in-period which starts from the time of deposit and exists until the time of maturity. The investor cannot withdraw the money during this period. If in case, there is a need to withdraw the money before the maturity time of the fixed deposit, then the bank will deduct some percentage of money from the maturity amount as a penalty and after deducting the penalty the remaining balance will be paid back to the investor. This is known as premature withdrawal.

    Most of the banks, post offices and corporates offer fixed deposit schemes to individual and institutional investors in India at an attractive rate of returns. The rate of interest varies from one bank to another and it ranges from 4% to 8%.

    Customers can avail loan facility on fixed deposits. The banks will grant loans against fixed deposits up to 80 to 90 percent of the value of deposits.

    Fixed deposits in India attract tax in the form of Tax Deducted at Source (TDS) if the interest amount is more than Rs 10,000 per financial year. To avoid this customer has to fill in Form 15 G if the total income for a financial year does not fall within the overall taxable limit.

    For senior citizens (aged above 60 years), banks in India provide an extra rate of interest on the fixed deposits.

    The following are the list of private banks in India which provide attractive rate of interest on fixed deposits.

    Deutsche Bank

    Deutsche Bank in India offers the best rate of interest as it provides a rate of interest at 8% per annum for a 5-year term fixed deposit.

    • Maximum tenure is 5 years.
    • The minimum amount of investment is Rs 20,000.
    • Nomination facility is available.
    • Online booking facility is available.
    • Get overdraft facility of up to 95% against fixed deposit at competitive rates.

    TenureInterest Rate
    7 Days4%
    8 - 29 Days4.50%
    30-45 Days4.75%
    100 Days5.70%
    181 - 270 Days5.95%
    271 Days - 1 Yr6%
    > 1 Yr - 2 Yrs7.25%
    > 2 Yrs - 5 Yrs7%
    5 Yrs8%

    RBL Bank

    The RBL Bank in India offers a rate of interest at 7.25% per annum on its term deposits.

    • Booking period varies from 7 days to 20 years.
    • Nomination facility is available.
    • Partial/Pre-mature withdrawal facility of term deposit is permitted.
    • Overdraft facility against term deposit is available.
    • The convenience of booking deposits through interest banking facility is available only for RBL Bank account holders.
    • Opt to receive interest - monthly, quarterly or on maturity basis.

    TenureInterest Rate
    7-14 Days5%
    15-45 Days5.25%
    46-90 Days7.00%
    91-364 Days7.15%
    12 months to less than 36 months7.25%
    36 months to less than 120 months7.15%
    120 months to 240 months7.10%
    Tax Savings Fixed Deposit (60 months to less than 120 months)7.15%

    Kotak Mahindra Bank

    Kotak Mahindra Bank is the first non-banking finance company in India to convert into a bank. It offers a rate of interest at 7.00% per annum on its term deposits.

    • Minimum Deposit of Rs 10,000.
    • For New Customer, minimum Deposit is Rs 25,000.
    • Booking period ranges from 7 days to 10 years.
    • Opt to receive interest either on monthly or quarterly or on maturity basis.

    TenureInterest Rate
    7 - 14 Days3.50%
    15 - 30 Days4.00%
    31 - 45 Days5.00%
    46 - 90 Days5.40%
    91 - 120 Days6%
    121 - 179 days6.25%
    180 Days - 363 Days6.50%
    364 Days6.90%
    365 Days to 389 Days7.00%
    390 Days (12 months 25 days)7.10%
    391 Days - Less than 23 Months7.00%
    23 Months - less than 2 years6.90%
    2 years- less than 3 years6.75%
    3 years and above but less than 5 years6.50%
    5 years and above upto and inclusive of 10 years6.25%

    Standard Chartered Bank

    India's largest international bank - Standard Chartered Bank, offers a rate of interest at 6.90% per annum on its term deposits.

    • Flexible tenure ranging from 7 days to 5 years.
    • Open Fixed deposit online.
    • Minimum Deposit of Rs 10,000.
    • Option to choose a preference of simple interest or compounded interest.
    • Auto-renewal facility is available.

    TenureInterest Rate
    7-14 Days4.25%
    15 -29 Days4.50%
    30-44 days5.00%
    45 -59 Days5.50%
    60-89 Days5.75%
    90 -120 Days6%
    121 -180 Days6.25%
    181-210 Days7%
    211-364 Days6.70%
    1yr - 375 Days6.90%
    376 Days -< 18 Months6.50%
    18 Months < 21 Months6.95%
    21Months <3 Years7.00%
    3 Yrs <= 5 Years6.50%

    ICICI Bank

    One of the country's largest private sector bank, ICICI Bank offers a rate of interest of 6.60% per annum for 1-year tenure on its fixed deposits.

    • Minimum Deposit of Rs 10,000 for general customers and Rs 2,000 for minors.
    • Maturity period ranges from 7 days to 10 years - Traditional Plan.
    • Maturity period ranges from 6 months to 10 years - Reinvestment Plan.
    • Avail loan facility up to 90% of principal and accrued interest.
    • Nomination facility is available.
    • Online/Phone booking facility is available.
    • Premature withdrawal facility is available.

    TenureInterest Rate
    7-14 Days4.00%
    15-29 Days4.25%
    30-45 Days5.50%
    46-60 Days5.75%
    61-184 Days6.00%
    185-289 Days6.25%
    290 Days to less than 1 year6.50%
    1 year to 389 Days6.60%
    390 Days to 2 years6.75%
    2 years 1 Day upto 10 years6.50%
    5 years tax saver FD (Max upto Rs. 1.50 lakhs)6.50%

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