FD Account is a safer investment alternative. It is quick, easy to operate and can be opened with minimal documents. In an FD Account, you deposit a certain amount for a fixed period. The FD tenure starts from 7 days and goes up to 10 years. Banks offer higher interest rates on fixed deposits and fixed for whole tenure once FD account gets opened.
You can opt for interest payout option wherein the interest on your deposited amount is paid out to you on a monthly, quarterly or yearly basis. There is once more option called "Cumulative Option" wherein the interest earned by you is not paid midway but it is paid at the end of the tenure along with the principal invested by you.
Bank FD is a suitable option for ultra-conservative investors who want to opt for an investment avenue which offer them fixed and assured return with high safety. So for such investors, it is equivalent important to know as to How to Choose Right Fixed Deposit (FD)? Outlined steps will help them choosing right fixed deposit (FD):
The highest interest rate is offered by Fincare Small Finance Bank (for 3 years) at 9.00% and Equitas Small Finance Bank (for 3 years) at 8.80% followed by Suryoday Small Finance Bank (for 3 years) at 8.75%.
Disclaimer: The Fixed Deposit Interest Rates keep on changing. You are advised to check the interest rates with banks before making your FD. Source: Bank Websites