When it comes to building your wealth, investing is your best bet. Experienced investors usually often have diversified portfolios. They invest in a variety of asset classes, some of which may be low-risk-moderate-yield options, others high-risk with the potential for high yield. This boils down to risk appetite, and in most cases, risk and return are directly related. However, there are vehicles like the fixed deposit, which are not only low risk, but also promise commendable returns.
These instruments are offered by banks, non-banking financial companies, and the post office. Each having its own merits, it falls on you as the investor to pick one that best suits your needs. For maximum returns, the best instrument is one that offers high FD rates as this directly translates to returns. Here, company FDs may be your best option as they have high FD rates, usually surpassing the competition. For a clearer idea of your options, read on.
Read also: Attractive FD rates, stable returns make fixed deposits the ideal investment option
FD Interest Rates Offered by Top Banks and NBFCs
Comparing FD interest rates from top financial institutions is the first step to maximizing returns. By knowing where you can get the best rate and how it compares to the others, you can make a more informed and calculated decision. Take a look at this table to know the FD rates offered by some of the top players in the market.
| Financial institution | Rate of Interest | |
| Non-senior Citizen Investor | Senior Citizen Investor | |
| Bajaj Finance | 5.65% – 6.80% | 5.90% – 7.05% |
| HDFC | 4.90% – 5.50% | 5.40% – 6.25% |
| SBI | 5.00% – 5.40% | 5.50% – 6.20% |
| Axis Bank | 5.10% – 5.75% | 5.75% – 6.50% |
| PNB Housing Finance | 5.90% – 6.70% | 6.15% – 6.95% |
| IDFC First Bank | 5.25% – 6.00% | 5.75% – 6.50% |
| Kotak Bank | 4.75% – 5.30% | 5.25% – 5.80% |
Disclaimer: Above-mentioned rates are as per listings on official websites as of December, 2021, and are subject to change.
Post office FD interest rates
Aside from financial institutions, you can also invest in a Post Office Fixed Deposit. This is an instrument offered by the Government of India’s Department of Posts and is another lucrative option to consider. Much like other fixed deposits, interest is compounded annually. Anyone can invest in these FDs, except NRI investors. The FD interest rates here range from 5.50% to 6.70% across tenors of 1 to 5 years.
To know more about the features of fixed deposits across various financiers and how you can make the most of it, take a look at these pointers.
Read also: 35 crore Post Office accounts with deposits of Rs 10 lakh Cr connected to banking system
Affordable minimum deposit amount
You don’t have to save for months on end before you can invest in an FD. The minimum deposit amount varies from bank to bank and can be opened with a minimum of Rs. 50 as well. However, the minimum deposit amount is Rs.1,000 for a post office FD, allowing you to start your investing journey a lot sooner. The earlier you get started, the better are your returns as you stay invested for longer and enjoy the benefit of compounding interest.
Lengthy and flexible tenor options
With fixed deposits, you have the freedom to tailor your investment to suit your financial goals. Pick a tenor that ranges anywhere between 12 and 60 months, and enjoy attractive returns all through. The best part is that it is a viable option whether you have short-term or long-term goals to achieve. With NBFCs you also have the option of choosing flexible payout options by opting for a non-cumulative FD where you can get interest payouts on a monthly, quarterly, half-yearly or annual basis.
Read also: Fixed Deposits: Boon or Bane?
Safety and credibility
Post office FD’s are safe instruments to invest in as it is guaranteed by the Government of India and is thus safe to invest in. Bank FDs are equally safe as the RBI has made it compulsory for banks to have deposit insurance. While opting to invest in an FD with a NBFC, checking the stability ratings accredited by ICRA and CRISIL is important as they are key indicators of safety.
What’s more, digital provisions such as an online paperless investing process and even accepts payments through net banking or UPI have made it even more easy to invest in a fixed deposit from the comfort of your home. So, get started today, invest online and build your wealth worry-free.
