Interest Rate on Fixed Deposit for 2 Years 2024
About Fixed Deposit
Bank FD is a very popular investment instrument for Indians. It provides assured returns. It is very safe and easy to open account for the customers. FDs tenure ranges from 7 days to 120 months. Banks are free to offer interest rates as decided by them for different tenures.
Through bank FD, you can think of achieving your long term financial goal. The reasons behind it are, first it offer better interest and if you reinvest the amount for long time then it will help you achieve your financial goals. Secondly, it provides fixed rate of interest.
Fixed Deposit Features
- Maximum Investment Amount: No such limit
- Interest Rates Variable: From 7 to 9% based on term
- Interest earned is taxable: Yes
- Lock in Period: No
- Tenure: 2 Years
- Maturity Value: Taxable
- Premature Withdrawals: Entire amount, anytime but after charging a certain penalty
- Risk: Risky as compared to PPF
Factors Affecting FD Interest Rate
Age of Investor
If the age of investor exceed 60 years i.e. when he/ she becomes a senior citizen then he/ she will be offered higher interest rate as compared to normal investor who is below 60 years of age. Senior citizen usually get 0.50% more interest rate by the bank on FD. Some banks offer more also.
Tenure of Investment
FD Tenure is a period for which the FD is opened. FD interest rate depends upon tenure of FD. You can open an FD for a period from 7 days to 10 years. The rate of interest varies on the basis of FD's tenure. Usually, higher interest is offered on longer tenure FDs.
Current economic conditions have a significant effect on the interest rates on FDs. Whenever the country is developing, its economy is growing and the credit demand is high. During such times, banks make FDs more attractive by offering higher rate of interest on FDs.
Policy Rate of the RBI
Fiscal policy along with monetary policy affect the interest rates on FDs. Cash Reserve Ratio (CRR) and Repo Rate variation have an impact on the interest rates of fixed deposits (FDs).