Gramin Banks (Regional Rural Banks (RRBs)) which are Indian scheduled banks operate in different States of the country at regional level. They provide basic banking and financial products and services primarily in the rural areas. The area of operation of RRBs is restricted to the area as notified by Government covering one or more districts in the State. Gramin Banks offer you Fixed Deposits for period ranging from 7 days to 10 years at attractive rate of interests. Gramin Banks also offer Recurring Deposit Account.
If you are planning to deposit amount in a fixed deposit scheme in a gramin bank operating in your area, you need to look at two major parameters: interest rate and tenure. Other factors are convenience and penalty on premature withdrawal.
Table appearing below will help you in viewing interest rates offered by different Gramin Banks for a period of 1 year. If you want to get FD interest rates of all the tenures offered by a particular bank, you need to click on "FD Interest Rates" button against that bank. You can also use FD Interest Calculator to get to know your FD's maturity value and interest earned.
Safety of Principal
There is no erosion in principal in case of FDs while many other kinds of investment do not guarantee intactness of principal deposited.
Interest rate is fixed while opening the FD account. This interest remains fixed for entire tenure of FD and will not vary at all. It also does not depend upon market fluctuations.
Loan against FD
In case of need of money, you can get loan against your FD at lower interest rate being it a secured loan. It will be available instantly and also with least documentation.
Easy to Open
It is very convenient to open FD. You will get different choice as far as period of FD is concerned. The FD tenure ranges from 7 days to 10 years.
No Lock-in Period
There is no lock-in period under FD investment. If you come across any emergency and need the funds deposited in FD urgently, you are allowed to close it before its maturity but you need to pay some penalty which may be somewhere around 0.50% to 1%.
Auto Renewal Option
There is availability of auto renewal option. Auto renewal of FD option is provided by the banks in which your FD will automatically get renewed at the interest rate prevailing at the time of maturity for the same tenure for which it was originally booked. In this case, you are not required to keep track of FD's maturity date and there is no loss of interest as well, if you forget withdrawing the amount on its maturity.
Source of Fixed Regular Income
You can opt for interest payout option from your FD and can get a regular fixed income. You may choose monthly or quarterly option according to your needs.
Tax Free Interest upto a Certain Amount
The interest earned is tax free upto Rs 10,000 per financial year for the FD holders.
|Bank||Tenure||FD Interest Rate (p.a.)||Find Interest Rates||Calculate|
|Kashi Gomti Samyut Gramin Bank||12 Months||9.05%|
|Chaitanya Godavari Grameena Bank||12 Months||8.00%|
|Saurashtra Gramin Bank||12 Months||7.65%|
|Kerala Gramin Bank||12 Months||7.50%|
|Pandyan Grama Bank||12 Months||7.35%|
|Jammu And Kashmir Grameen Bank||12 Months||7.30%|
|Pragathi Krishna Gramin Bank||12 Months||7.30%|
|Telangana Grameena Bank||12 Months||7.25%|
|Rajasthan Marudhara Gramin Bank||12 Months||7.25%|
|Andhra Pragathi Grameena Bank||12 Months||7.25%|
|Puduvai Bharathiar Grama Bank||12 Months||7.25%|
|Pallavan Grama Bank||12 Months||7.15%|
|Saptagiri Grameena Bank||12 Months||7.10%|
|Andhra Pradesh Grameena Vikas Bank||12 Months||7.10%|
|Tripura Gramin Bank||12 Months||7.05%|
|Prathama Bank||12 Months||7.05%|
|Malwa Gramin Bank||12 Months||7.00%|
|Punjab Gramin Bank||12 Months||7.00%|
|Ellaquai Dehati Bank||12 Months||7.00%|
|Karnataka Vikas Grameena Bank||12 Months||7.00%|
|Sarva Haryana Gramin Bank||12 Months||7.00%|
|Sutlej Kshetriya Gramin Bank||12 Months||7.00%|
|Baroda Rajasthan Kshetriya Gramin Bank||12 Months||6.85%|
|Narmada Jhabua Gramin Bank||12 Months||6.85%|
|Baroda Up Gramin Bank||12 Months||6.80%|
|Allahabad Up Gramin Bank||12 Months||6.80%|
|Utkal Grameen Bank||12 Months||6.80%|
|Maharashtra Gramin Bank||12 Months||6.80%|
|Kaveri Grameena Bank||12 Months||6.80%|
|Central Madhya Pradesh Gramin Bank||12 Months||6.75%|
|Meghalaya Rural Bank||12 Months||6.75%|
|Mizoram Rural Bank||12 Months||6.75%|
|Dena Gujarat Gramin Bank||12 Months||6.75%|
|Odisha Gramya Bank||12 Months||6.75%|
|Chhattisgarh Rajya Gramin Bank||12 Months||6.70%|
One of the popular instruments to invest your savings is Bank Fixed Deposit. Bank deposit is considered a safe avenue which provides much better returns than a savings account. Apart from that, it is very easy to open the FD account with any bank. In a Fixed Deposit Account, you need to deposit a lump sum amount for a fixed period at prevailing rate of interest. When the FD tenure ends, you will receive the amount you have invested along with the compound interest thereon. Fixed Deposits are also known as term deposits.
Nomination facility is also available in the bank fixed deposit account.
There is also a facility that you can take a loan against your Fixed Deposits when you need funds. Fixed Deposit is considered as a safe and risk-averse investment.