Which Bank is Best for Fixed Deposit in India?

If you are wondering whether investing in fixed deposit accounts is a profitable idea in 2024 or not, here is all you need to know about FD rates in India. Find out which bank is best for fixed deposit, and other related questions that you must have in this regard.

Investing in fixed deposit in India is one of the safest and most secure methods available across the country. However, deciding which bank you want to invest in can be tricky at times. Here are some details regarding the same that can help you with your investment process.

Which Bank is Best for Fixed Deposit?

Several banks offer various interest rates as per the tenure period that you are willing to invest for. The first and foremost step for you would be to compare and contrast all the interest rates at your contemporary time and go for the best option that suits all your demands. 

Some of the leading banks to offer the best interest rates in 2024 in India are the State Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, Canara Bank, Punjab National Bank, to name a few. The State Bank of India offers around a 5.40% interest rate to all the general citizens. And they offer around 6.5% interest rate to the senior citizens in the country.

The ICICI Bank offers an interest rate that ranges from 2.50% to 6.30%, depending on whether you are a general citizen or a senior one. The HDFC bank offers FD at an interest rate of 3% to 6.25% depending on whether you are a general citizen or a senior citizen. Similarly, Canara bank offers an interest rate that ranges from 4% to 6%. 

Axis Bank, Bank of Baroda, IDFC Bank, Punjab National Bank, and other major banks in India offer an average interest rate of 3% to 5.5%. The interest rates of all the banks depend on the tenure period that you decide to invest for. All these banks are some of the Best interest offering banks in India in today’s world. 

Therefore, if you are wondering which bank is best for fixed deposit in India in today’s world, decide which option seems to be the best fit for your demands and go for the one for your future investments.

Why Should You Invest in Fixed Deposit?

Fixed deposit accounts are some of the safest proceed years in India when it comes to investing safely. They are also some of the most traditional methods that have been used by people since the beginning. There are several factors that you should keep in mind if you are looking forward to investing shortly.

• After you invest in an FD account, the FD interest rates does not fluctuate no matter how much the market rate fluctuates. No external matter affects the interest rate that is offered by the bank or other agencies when you deposit the money.
• Fixed deposit accounts are safe, and they keep your money secure and free from involvement with all mal-activities.
• If you are a senior citizen, a fixed deposit can be your best option available out there. Most of the banks tend to offer a higher rate of interest to all senior citizens. No amount of assurance is needed from your side when it comes to deciding the tenure period with the bank as well.
• If you are willing to save money for your business for the future, or other future endeavours, fixed deposit accounts can be the best option for you to consider. The fact that various agencies, banks, post offices, and other non-banking financial companies offer fixed deposit services makes it one of the most available and approachable money depositing methods in the country.
• You will receive the insured amount by the end of the procedure, and the amount of money you deposited and the interest rate promised.

Fixed Deposit Tenure Options

Several interest rates are offered by banks, NBCF, and post offices across the country. The interest rate depends on the tenure period that you select at the beginning of your investment.

The tenure period can be as low as seven days to 10 years, depending on your convenience. Several banks offer good interest rates for the tenure period of one year. ICICI Bank, SBM bank, ESAF Small Finance Bank, and Shriram City Union Finance offer a good Interest rate ranging from 3% to 6.25% to the general citizens.

If you decide to go for a three-year tenure period, several banks offer good interest rates at these 10 year periods. Bajaj Finserv, DCB bank, RBL bank, IndusInd bank, Jana Bank, Suryoday small finance bank, and some other banks seem to offer a fixed interest rate of 6.25% to the regular citizens.

You also can go for a five years or 10 year tenure period when you decide to invest in a bank. Yes Bank, DCB Bank, Jana Bank, Indusland bank, and other banks offer around 6.5% interest rate for 10 years or five years. 

On the other hand, if you decide to invest for 10 years, the State bank of India, HDFC Bank, Canara Bank, Axis Bank, Bank of Baroda, ICICI Bank, along with some other banks, offer an interest rate that ranges from 5% to 8% depending on whether you are a general or a senior citizen. Therefore, decide which bank is best for fixed deposit 2020 and 2024 as per your needs, and go for that one for your future investments.

What are Tax Saver FDs?

In simple words, text silver fixed deposits can be considered one of India's most profitable and safe investment options. It is a feasible option if you are looking for a safe option to store your money safely and get a good interest rate at the end of the procedure, along with the amount you deposited.

Tax saving fixed deposits can be better than other equity-based tax-saving avenues. It is a much safer and secure option for investing your money in India in 2024. 

Some of the major factors that you should keep in mind while going through the tax saving FD receipt or are:

• The minimum lock-in period for the tax Saver FDs is five years. You cannot under any circumstance withdraw the money that you deposited at the beginning of the procedure. Only after the completion of five years or more can you withdraw your money with interest.
• No premature withdrawal is allowed when you opt for a tax-saving FD plan. Only in the event of demise, a senior citizen can select another individual to withdraw the money from their account.
• Tax saving Fixed deposits can be better than taking loans from microlenders or other agencies if you are looking for a safe investment method in India in 2024.
• The minimum deposit amount starts from Rs.1000. Anyone can invest as low as Rs.1000 to start investing in their fixed deposit account.
• The maximum amount that you can deposit has to be at least 1.50 lakh. Therefore, if you fail to deposit this much, the procedure will not be successful.

These are some of the major features of tax-saving FD in India that you should keep in mind if you plan to invest in tax saving FD.

Benefits of Fixed Deposit in India

You can expect several benefits when you decide to invest in a fixed deposit in India in 2024. Some of their major benefits are mentioned below.

• For senior citizens, depositing in a fixed deposit account can be the best option, considering how they are offered a higher interest rate by most of the banks in India. Senior citizens are also allowed to choose a flexible tenure period and change it during the procedure, unlike the general citizens. The latter have to select a fixed tenure period at the beginning of the procedure.
• Fixed deposit accounts are some of the most reliable and safe methods for investment in India. Since the beginning and our traditional methods, they have been in the market that one can trust without the fear of losing their money to some third party agency.
• No matter what the market rate is, the interest rate promised to you before making your investment remains unchanged during your entire procedure.
• The banks and the other agencies offer you a guaranteed plan to return your money by the end of the entire period, along with the interest rate they offered.

Irrespective of other external factors, your deposited money gets refunded along with the interest rate at the end of the period without fail.

Highest Fixed Deposit Rates in 2024

If you are wondering which bank is based for fixed deposit in India in 2024, here are some of the leading banks that offer the best interest rates as per the industry level.

The State Bank of India offers around 3% to 5.40% interest rates to all their general citizens. They offer around a 6.50% interest rate to senior citizens. 

Similarly, the ICICI bank offers around 3% to 5% interest rate to all the general citizens. And they offer around 6% interest rate to all the senior citizens. On the other hand, HDFC Bank, Punjab National Bank, Canara Bank, Axis Bank, and Bank of Baroda offer around 3% to 5.75% interest rates to all the general citizens and around 6.50% interest rate to all the senior citizens in India.

If you are someone who does not want to invest in a bank and are looking for other non-banking financial companies and post offices, some of the best options for you can be DSBM Bank, Muthoot Capital, Bajaj Finserv, Jana Bank, RBL Bank, DCB Bank, Yes Bank, to name a few. 

For instance, SBM Bank offers an interest rate ranging from 6.30% to 7.50% to all the citizens depending on the selected tenure period. 

Similarly, other banks like Yes Bank, DCB Bank, Indusland bank, RBL bank tend to offer an interest rate ranging from 5% to 7%, depending on the tenure period you select. Compare and analyse the rates and go for the best rate according to your selected tenure period.

If you want to avoid both bank and non-banking financial companies, post offices can be the best option for you. Post offices tend to have a similar interest rate that they offer in India. The interest rate they offer ranges between 5% to 7.5% depending on the 10 years. The interest rate tends to be higher for senior citizens like the other banks and NBCFs.

Eligibility Criteria

It is of utmost importance to go through the eligibility points to analyse whether or not you are eligible to deposit in a fixed deposit account in India.

1. You have to be an Indian resident to deposit in a fixed deposit account in India in 2024.

2. Minority quota residents are also eligible for investing in fixed deposit accounts in India.

3. NRIs are also allowed to make investments in fixed deposit accounts in India in 2024.

4. If you run a company and are looking for investment options, fixed deposits can be the best option for you.

5. Whether you are an individual or have a partner to invest in together, you can make investments in fixed deposit accounts in India.

FD vs RD? Which is Better?

The major point that distinguishes fixed deposits and recurring deposits is the method in which citizens invest. As long as the fixed deposit accounts are concerned, investors are supposed to deposit a fixed amount for a fixed period. Interest rates are decided after considering the tenure period that the investor has agreed to invest for.

As far as the recurring deposit accounts are concerned, Investors or not supposed to deposit the money for a fixed period. They are expected to deposit money in small intervals for a long period. The main purpose of recurring deposit accounts is to develop a habit of saving regularly for a prolonged period.

Both recurring deposits and fixed deposits are taxable. As far as recurring deposits are concerned, it is still not compulsory to pay tedious. However, the investor has to mention the amount of interest while filing income tax returns. In a fixed deposit system, if the amount is more than Rs.10,000, the investor has to pay. If the investor provides PAN card details, the tax amount cut from the interest rate remains 10%. In case the PAN details are missing, the investor has to pay 20% TDS from the interest rate.

For salaried individuals and those who tend to have a low annual income, the recurring deposit option seems to be the better one. On the other hand, self-employed individuals, businessmen, and higher income rates can go for the fixed deposit option.

FAQs

✅How much tax do I have to pay if I invest in fixed deposit accounts in India?

Ans: If your PAN card details are mentioned and updated, you will be asked to pay around 10%. On the other hand, if your PAN details are not mentioned, he will be asked to pay around 20% tax from your interest.

✅Is it safe to invest in fixed deposit accounts in 2024?

Ans: Fixed deposit accounts are the safest and most reliable option when it comes to investment in India in 2024. It is a traditional method that several people have followed since the beginning. It is a risk-free method of investing.

✅What is the lowest amount that I can deposit if I deposit in FDs?

Ans: The minimum amount deposited depends on the bank or other agency you are deciding to deposit in. Generally, the minimum amount remains around Rs.1000.

✅In how many years will the interest rate double up?

Ans: It depends on the bank you are investing in. The interest plan mentions all details regarding the rates and the progress.