Overview
There are various bank which offer fixed deposits and the interest rates differ from bank to bank in India. The key for maximizing the returns is to choose the right fixed deposit which provides highest returns.
What are various types of fixed deposits?
There are majorly three types of fixed deposits.
1) Term Deposits: This is one time fixed deposit which ranges from the period of 90 days to 10 years. The interest on this type of fixed deposit is paid at the end of the tenure along with the investment amount
2) Recurring Deposit: In this case, an investor deposits equal monthly investments and interest with all the deposits would be paid at the end of the tenure period
3) Variable Recurring Deposit: This is one of the unique recurring deposits. Here, an investor needs to invest a minimum amount on monthly basis and he can add any additional amounts without any limit thereafter E.g. An investor can invest Rs.1,000 per month regularly and in case he has surplus amount of Rs.50,000, he can invest in that particular month.
Below are the top 5 fixed deposits one can invest to maximize the returns:
| Bank | Cateogory | Rate of interest | Period |
|---|---|---|---|
| Tamilnadu Merchantile Bank | Private Bank | 10.00% | 1 Year and above |
| Development Credit bank | Private Bank | 9.75% | 18 months and above |
| Yes Bank | Private Bank | 9.60% | 15 months and above |
| Allahabad Bank | Public Sector | 9.50% | 1 Year and above |
| Vijaya Bank | Public Sector | 9.50% | 1 Year and above |
*The rates are taken as of a specific date. Investor to enquire with bank before investing
Conclusion: An investor can invest in Term deposits in case he has lumpsum amount. He can choose variable recurring deposit in case he want to invest surplus amounts at any point of time. He can get maximum benefit through variable recurring deposit as he need not rush to bank for depositing each and every surplus amount he has.
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Suresh
Myinvestmentideas.com
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