The beginning of the month is the best time for salaried individuals to start an investment plan. If you are looking at fixed deposits or Fds, here is a list with a combination of safety and best interest rates.
Dewan Housing Ashray Deposit offers an interest rate of up to 8.90 per cent on a 40-month cumulative deposit. CARE and BWR have both rated the fixed deposits as AAA, which means they could be considered as safe.
Below that you receive an interest rate of 8.75 per cent. Fixed deposits above Rs 50 lakhs attract an interest rate of up to 9.15 per cent per annum on a 40-month tenure.
Again, these are highly rated deposits that offer you decent interest rate when compared to banks. A 12-17 month deposit gives you an interest rate of 8.55 per cent, while the 18 to 60 month deposit offers you an interest rate of 8.65 per cent. This is a good 1 per cent over and above what banks are offering.
Senior citizens are entitled to an extra 0.25 per cent.
It is also a part of the Bajaj group.
RBL Bank offers an interest rate of 8.50 per cent on its cumulative FDs for 24 to less than 36 months. This is perhaps the best from a private sector bank. The shares of the bank also recently got listed on the exchanges.
KTDFC, is a government of Kerala enterprise. So to that extent your Fixed deposits are safe, as the deposits are guaranteed by the government of Kerala.
The deposits offer an interest rate of 8.50 per cent for tenures of 1, 2 and 3 years. Remember, that company deposits attract a TDS after Rs 5,000 as interest.
Mahindra Finance offers an interest rate of 8.45 per cent, under the cumulative scheme, across all tenures. This may not be better than Bajaj Finance, but is largely safe. Remember, there is a TDS that would be applicable on the deposits, if the interest income crosses Rs 5,000.
IDFC Bank is the new private sector bank. The bank's Fds offer an interest rate of 8.25 per cent for tenures ranging from 1-3 years. Senior citizens are entitled to an interest rate of 8.75 per cent, which is pretty decent
These FDs offer you an interest rate of 8.42 per cent, with a yield of 10.42 per cent. This has to be among the better list of FDs.
Most other banks in the country offer an interest rate of 7.5 per cent, which is the maximum. Therefore, if you are looking for superior interest rates, it is best to invest in the above.