INSUBCONTINENT EXCLUSIVE:
Fixed deposits (FDs) offer higher interest rates as compared to savings accounts.
Bank fixed deposits (FDs) offer compelling interest rates
Fixed deposits require you make a lump-sum investment for a pre-specified tenure and enable you to earn a fixed interest rate until that
Customers can avail fixed deposits from a minimum of seven days to 10 years
Interest payout frequencies that a customer can choose with fixed deposits are monthly, quarterly or at maturity (cumulative FDs)
Interest received from fixed deposits is added to the total income and taxed as per the applicable tax slab
Tax deducted at source (TDS) is also applicable.(: Saving Schemes That Are Just A Click Away - Public Provident Fund Vs Fixed
Deposits)Advantages of a fixed depositFixed deposits offer higher returns as compared to savings accounts
The interest payout options that customers can choose help them with regular cash flows or earn even higher interest rates by opting for
cumulative interest where the interest is compounded quarterly, thus providing even better returns.If someone has lump-sum surplus available
for investment with a requirement of these funds at a specified date, one may choose to put in to a fixed deposit account, said Puneet
EVP, Kotak Mahindra Bank."Fixed Deposits have been a traditional avenue as an investment that provides fixed, safe and reasonable returns
This product gives you a choice to book a deposit for up to 10 years and in a falling interest scenario, one can conveniently opt for a
longer tenure and secure returns," Mr Kapoor said.(: Why To Deposit Money In NBFC Fixed Deposits - Interest Rates Offered, Risks
Involved)Given below are interest rates on fixed deposit accounts of State Bank of India (SBI), HDFC Bank, ICICI Bank, YES Bank and Kotak
Mahindra BankBanksUp to 1 yearUp to 3 yearsUp to 5 yearsSBI6.65%6.70%6.75%HDFC Bank6.85%7%7%ICICI Bank6.60%7%7%YES Bank7.10%7.10%7.10%Kotak
Mahindra Bank7.25%6.75%6.50%Small finance banks also offer fixed deposit accounts, the interest rates on which are as high as 9 per cent
Fixed deposits are also offered by non-banking finance companies, other corporates, and post offices.
