Latest interest rates on FD ( Fixed deposit) in banks and Corporate

 One of the best financial options is a fixed deposit. Many people use this FD as the greatest and safest method of investment.

There are a few things you should know before investing in FDs, sometimes referred to as term deposits.

About this blog: This is informative blog on the FD investment based on the search. For more information visit the websites of the banks and institution. 

Content :

FD options : 

Best options for FD in the banks
Best options for corporate FD  

Types of FD:

• Normal FD ( Interest paid as on current rate of interest) 
• Sr citizen FD ( min 0.25% extra)
• Short term FD ( min 7 days )
• Tax saver FD ( 5 years locking period )
• Cumulative FD ( Interest compounded monthly, quarterly, half yearly and yearly) 
• Non cumulative FD ( Interest paid out monthly, quarterly, half yearly and yearly as per section) 

For General Public interest rates in %
	Banks
Tenors	SBI Bank	HDFC Bank	ICICI bank	Indusind Bank
7 days to 45 days	3	3 -3.5	3-3.5	3.5-4
46 days to 179 days	4.5	4.5	4.25-4.75	4.5-5
90 days < = 6 months	-	4.5		5
180 days to 210 days	5.25	-	5.75	5.85
6 mnths 1 days <= 9 mnths	-	5.75	5.75-6	6
9 mnths 1 day to < 1 year	-	-		6.25
211 days to less than 1 year	5.75	6		-
1 Year to less than 2 years	6.8	6.6 - 7	6.7-7	7.5-7.75
2 years to less than 3 years	7	7	7	7.75
3 years to less than 5 years	6.5	7	7	7.25
5 years and up to 10 years	6.5	7	6.9	7

For senior Citizen intrest rates in %
	Banks
Tenors	SBI Bank	HDFC Bank	ICICI bank	Indusind Bank
7 days to 45 days	3.5	3.5-4	3.5-4	4-4.5
46 days to 179 days	5	5-6.25	4.75-5.25	5-5.5
90 days < = 6 months	-	5		5.5
180 days to 210 days	5.75	-	6.25	6.35
6 mnths 1 days <= 9 mnths	-	6.25	6.25-6.5	6.5
9 mnths 1 day to < 1 year	-	6.5		6.5
211 days to less than 1 year	6.25	6.5		-
1 Year to less than 2 years	7.3	7.1-7.5		8-8.25
2 years to less than 3 years	7.5	7.5	7.5	8.25
3 years to less than 5 years	7	7.5	7.5	7.75
5 years and up to 10 years	7.5	7.75	7.5	7.5

Risk level is low and good return for investing in the FDs.

Best options for corporate FD  

Company fixed deposit or corporate FD is the term deposit for min 1 year of duration.

The difference between the corporate FD and Bank FD: Corporate FD gives additional interest rate in comparison with the Bank FD. 

Always check the rating before investing in this FD. 

Corporate FD :

This is Company Fixed Deposit ( corporate FD) in term deposit which is held for fixed period at fixed rate of interest. This FDs are offered by Financial and NBFCs. The intrest will be earn over the principal monthly, quarterly and annualy. 

• Bajaj finance LTD
• Shriram transport finance Ltd
• ICICI Home Finance 
• Mahindra Finance Ltd

Always check the compounding months for calculation of the maturity amount. The risk in this deposit is higher when company will go bankrupt or hit by slowdown.

Tenure period is from 1 year to 5 years. All companies wont offer this option. Read all documents and source before investing. 

TDS will applicable in both the deposits. 

NRI also able to invest in this corporate FDs.

In average 0.5 to 1% interest rate will be higher in the Corporate FD.

Risk : The Bank FD always safer in comparison with the corporate FD. Bank always has strict rules and regulation which are governed by RBI. In extreme case if bank fail, your deposits are insured only up to INR 5 lakh per bank by Deposit Insurance.

TDS : The interest earned on Corporate FDs more than 5000/- and for bank FDs more than 10000/- TDS will be applicable. Need to fill the form 15G ( 15H for Sr Citizen) to save the tax.

Premature withdrawal : This facility available for both type of deposit by paying a penalty. This charges are vary from the institution to institution as well as depend on the tenure and amount you have invested. Some banks offer without premature withdrawal as well. For Tax saving FD the locking period will be fix for 5 years and no loan or premature withdrawal permitted. 

Always choose the corporate FD which has the highest credit rating at least AAA or AA. Check the financial results and fundamental of the company.   

Min deposit : Mostly for banks from min 1000/- INR deposit amount will be required whereas private banks min amount for deposit will be 10000/-. Min duration for bank FD 7 days and max to 10 years. 

For the company FD min amount 10000/- to 25000/- needed with the fixed min period of 1 year.

Loan facility : You can use the FD to avail the loan in emergency conditions, 80 to 85% of the loan available on the FD with min 1% of additional interest rate. The rate and loan amount will get vary from bank to bank. Some banks provide the credit card also against the FD .

Nomination : In all FDs this facility available at the time of the FD opening.

Auto renewal or reinvestment : This is good option to auto set the renewal for principal or principal with interest. 

Premature withdrawal :  On bank FD this option is available. Either premature or partial withdrawal  (loan against FD). For emergency situation this option is good. No loan or premature withdrawal facility available on the Tax saver FD.

Tax saver FD : Min 5 year of the duration is required for Tax saver FD and will get benefit in 80C  

FD calculators : Most of the banks have this option available in the website to calculate the benefit, check this before making the FD.

Always preferred to do research for investing and read all terms and condition carefully.  

This blog will be getting updated with more details. Keep reading and keep investing for better interest rate. Read other blogs to get more ideas for Travel, Technology and Investment.  

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