Perfect Fixed Deposit Schemes

The fixed deposit interest rates offered by other banks in India are given below for deposits below Rs.2 crore, as of November 2022. These are for tenures ranging from 7 days to 10 years.

• Normal Fixed Deposits
• Tax-Saving Fixed Deposits
• Senior Citizen Fixed Deposits
• NRI Fixed Deposits
• Cumulative/Non-Cumulative Fixed Deposits
• Flexi Fixed Deposits

• Fixed Tenure: The term of a fixed deposit is set in betterment and can be anywhere from 7 days to 10 years. When opening an FD account, you have the chance to select as per expect your tenure.
• Minimum Deposit Requirement: To open a fixed deposit, banks usually have minimum deposit needs. The minimum amount may differ between different types of organisations.
• Fixed Interest Rate:For the duration of the set tenure, the interest rate on a fixed deposit is levied at the time the account is opened.
• Nominations facilityIn the circumstance of an account holder's death, the nominee will receive the funds.
• Individuals and Joint investors:You can open a fixed deposit by individuals & with a joint investor, it can be your friend, spouse, or any family member.

Tax-saver FDs offer a maximum deduction of Rs.1.5 lakh under Section 80C of the Income Tax Act with the maximum deposit permissible being Rs.1.5 lakh. The lock-in period is 5 years. Senior citizens are offered an additional interest rate.

These are the interest rates as of November 2022.

Small Finance Banks also provide high interest rates on FDs. Here are the highest interest rates for deposits below Rs.2 crore for tenures ranging from 7 days to 10 years effective from November 2022.

NBFCs also offer competitive interest rates on their fixed deposit accounts. Here are the highest interest rates for tenures ranging from 1 year to 5 years for deposits less than Rs.2 crore effective from November 2022.

Here are the highest interest rates for deposits below Rs.2 crore for tenures ranging from 7 days to 10 years effective from November 2022.

These are the highest 1-year FD rates offered by different banks

These are the highest 2-year FD rates offered by banks effective from November 2022:

These are the highest 3-year FD rates offered by different banks

A new fixed deposit scheme called KBL Amrit Samriddhi scheme was launched by Karnataka Bank on the occasion of the Independence Day and mark the platinum jubilee of the day on which the country got its independence.

The bank will offer an interest rate of 6.10% on tenure of 525 days.

These are the highest 5-year FD rates offered by banks effective from November 2022:

Fixed deposits for senior citizens have some features that differentiate them from fixed deposits for the general public, such as:

• The depositor should be 60 years and above at the time of opening the fixed deposit account
• Depending on the bank, interest rates are higher by 0.25% to 0.50%
• The tenure is between 7 days and 10 days
• Loan against FD can be availed
• Penalties for premature withdrawal are the same as for the general public

The documents required for opening an FD account are as given below:

• Proof of identity: Voter ID, PAN card, Aadhaar card, driving license, photo ration card, senior citizen ID card, etc.
• Proof of address: Utility bills, bank statement with cheque, Post-office issued identification card or certificate, etc.

You can open an FD in two ways: online and offline.

Online: To open an FD account online, it would be easiest to do so with the bank where you already have an account. All you have to do is use the net banking facility, fill up the online form for opening an FD, and submit it. In such cases, KYC will not be required as your bank will already have the details. You can transfer the funds through your account using the internet banking facility.

Offline: Visit the nearest branch of your bank and fill up the application form for opening an FD account. Submit it to the concerned official with the required documents. Deposit the required amount and you will receive the FD receipt.

• The income you earn on your FD is termed as Income from Other Source and it is fully taxable.
• Banks will not deduct TDS, if your interest income from fixed deposits is less than Rs.40,000 in a year.
• You need to submit Form 15G and Form 15H to the bank at the beginning of the financial year. Banks will not deduct TDS following the form submission.

It is beneficial to understand the credit ratings of corporate fixed deposits before you open an account. These ratings are a testament to the consistency, stability, and credibility of the companies that offer these FDs.

The CRISIL credit ratings for FDs fall under the categories as given below:

The ICRA credit ratings for FDs fall under the categories as given below (these also have positive and negative values)

Here are the factors to look into when choosing a fixed deposit:

1. Compare the FD interest rates of different banks.
2. Review the credibility of the lender by examining the fixed deposit’s safety rating as given by ICRA or CRISIL.
3. Choose whether you want a cumulative or non-cumulative fixed deposit.
4. You can choose any that has good service and simple steps to apply for a fixed deposit.

Fixed deposits have several advantages, some of which are:

• Low risk: Market risks do not affect the returns on your fixed deposits.
• Insurance: Your deposits are insured for up to Rs.1 lakh by the RBI.
• Loan against FD: You can avail loans of up to 90% of your deposit amount at very low interest rates. This will usually be around 2% more than the FD interest rate.
• Easy liquidity: In the case of an emergency, you can easily liquidate your FD and release the funds.
• Regular income: You can get the interest sum credited as per your requirements on a monthly, quarterly, or annual basis.
• Tax benefits: Investing in tax-saving fixed deposits will fetch you tax deductions of up to Rs.1.5 lakh in a financial year.
• Senior citizens: Senior citizens are offered a higher interest rate compared to regular customers.
• Earn interest on your deposits and see your wealth grow.
• Flexible tenures.

Online steps:

1. Visit the official site and start the process of opening the FD.
2. Log in to your bank account & if you don't have one, create a new account on the bank website.
3. Navigate to FD option.
4. You have to complete all mandatory fields, including tenure, amount, nominee, and digital signatures and upload all the necessary documents.
5. Confirm all of the information and submit it. Make the payment through internet banking and you have to keep the receipt for future use to upgrade the FD for more years.

Offline Steps:

1. Visit the bank and request a fixed deposit opening form.
2. Then, complete the Fixed deposit application with the correct details including the amount and tenure. Submit the needed documents and the completed application form to the bank.
3. Provide the desired amount to invest in the fixed deposit account in cash or by cheque.
4. The bank will process your application and open your FD account.