{"id":11577,"date":"2019-06-18T12:15:16","date_gmt":"2019-06-18T06:45:16","guid":{"rendered":"https:\/\/www.antworksmoney.com\/blog\/?p=11577"},"modified":"2019-06-18T12:15:46","modified_gmt":"2019-06-18T06:45:46","slug":"compare-fixed-deposit-interest-rates-2019-in-india","status":"publish","type":"post","link":"https:\/\/www.antworksmoney.com\/blog\/compare-fixed-deposit-interest-rates-2019-in-india\/","title":{"rendered":"Compare Fixed Deposit Interest Rates 2019 in India"},"content":{"rendered":"\n

A fixed deposit (FD) is a kind of\ndeposit account rendered by banks for a fixed period at a fixed interest rate.\nThe money needs to be deposited only once while opening of account. At the end\nof the period, the interest amount is computed on the principal amount. The total\nsum along with the interest is paid to the depositor cumulatively. FDs or TDs (Term\nDeposits) are a low risk savings alternative which provides a fixed return. The\nduration varies from 7 days to 10 years. The rate of interest also changes\naccording to the duration of the FD, total rates in the economy as well as the\npolicy of the related bank. <\/p>\n\n\n\n

Interest rates in 2019<\/h3>\n\n\n\n

Bank FD rate of 9.25% provides fair\nreturns which is adequate to cover the inflation rate. A depositor has to be\ncareful before picking FDs of non banks because these FDs carry market as well\nas credit risk. The degree of risk with non bank FDs is mirrored in the degree\nof credit ratings attributed to the FDs of NBFCs and HFCs.<\/p>\n\n\n\n

Why pick FD?<\/strong><\/h3>\n\n\n\n

FD renders a lot of\nfeatures and benefits thereby making it the most popular investment alternatives\naccessible in India. Below-mentioned are some of the reasons of why one should\nchoose fixed deposit:<\/p>\n\n\n\n

  1. Sure returns on investment\n <\/strong><\/li><\/ol>\n\n\n\n

    FD earns every investor a fixed\nrate of return on their investments. The rate of interest applicable is what\nthe bank commits to pay on the investments. This provides the investor a fixed\nrate of return on their savings as well as the safety of their investment. In\naddition there is no risk committed to the investments made.<\/p>\n\n\n\n

    1. Flexible tenure alternatives\n <\/strong><\/li><\/ol>\n\n\n\n

      Normal fixed deposit also\nhas the option of flexible which ranges from 7 days to 10 years. The rate of\ninterest on these FDs also differs with different tenure alternatives. Though,\ntax-saver FDs are available merely for 5 years or 10 years fixed period.<\/p>\n\n\n\n

      1. Investment amount<\/strong> <\/li><\/ol>\n\n\n\n

        The minimum as well as\nmaximum fixed deposit investment amount varies from bank to bank. Tax saver FDs\nhas a maximum limit of Rs.1.5 lakh per annum. <\/p>\n\n\n\n

        1. Higher returns <\/strong><\/li><\/ol>\n\n\n\n

          The rate of interest on\nfixed deposits is higher than that which the bank pays on other savings\naccount. The rate of interest on FD varies from 3.5% to 9% per annum based on the\nbank, investors\u2019 age as well as the tenure that one invests the money for.<\/p>\n\n\n\n

          1. Loan against FD receipts <\/a><\/strong><\/li><\/ol>\n\n\n\n

            All customers who have FD\nin banks get the facility of availing loan against their FD receipts. The rate of interest on\nthese loans is normally 1-2% higher than FD interest rates but lesser than most\nother loans. <\/p>\n\n\n\n