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 and should be one of the best investment option/plan.
What are various types of fixed deposits?
There are majorly three types of fixed deposits.
- 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 or can be paid at regular intervals like once in a quarter, half yearly or annually
- Recurring Deposit: In this case, an investor deposits equal monthly investments. Interest with all the deposits would be paid at the end of the tenure period along with the investment amount or can be paid at regular intervals like once in a quarter, half yearly or annually
- 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 8 best bank fixed deposits one can look for investment option to maximize the returns:
|
Bank |
Cateogory |
Rate of interest |
Period |
|---|---|---|---|
|
Lakshmi Vilas bank |
Private Bank |
10.00% |
1 Year and above |
|
Development Credit bank |
Private Bank |
9.50% |
1 Year and above |
|
Citi union bank |
Private Bank |
9.75% |
1 Year and above |
|
Karnataka Bank |
Private Bank |
9.75% |
1 Year and above |
|
Karur Vysa Bank |
Private Bank |
9.75% |
1 Year and above |
|
Allahabad Bank |
Public Sector |
9.50% |
1 Year and above |
|
Vijaya Bank |
Public Sector |
9.50% |
1 Year and above |
|
Indian 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
An investor can invest in Term deposits in case he has lump sum amount and 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 each and every surplus amount he has.
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Suresh
Myinvestmentideas.com
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Whether any RD is available more than 10 years? Kindly advice me a suitable RD for a period of 30 years.
No Libin
Sir i would like to tell you that this website is very good in providing financial related information. can you tell me w hich one is good to invest recurring deposit or PPFor rather difference between two
Amar, RD is more like short to long term investment. You can withdraw any time by giving 1 day notice to bank. You need to pay some penalty charges if you close early. However PPF is done for purpose like tax saving u/s 80C or retirement purpose or to get tax free returns after 15 years. Here the lock-in period is 15 years. Investment in PPF is done for long term purpose
Sir, i am very Thankful for your reply. Can you tell me that for long term point of view should i go for RD or PPF.
I prefer PPF as the interest is tax free for 15 years.
Suresh,
Evenif u calculate according to ur formula, how is it possible to become crorepathi by saving 53500 p.m. for 10 yrs RD? Kindly calculate by compound interest method.. Kindly specify.thanks.
Raman, I could not understand your query. If you invest 53,500 @ 9% interest rate (current rate), it would be greater thanย Rs 1ย Croreย (Pre-tax). This is as per compounding method.ย
Thanks ,sir for ur valuable advice on fixed deposit ,sir iam 30 year old guy ,can u pls advice me that to whom I should go for recurring deposit or variable recurring deposit and for which bank for a tenure of 20 years out of icici ,hdfc ,central bank or cooperative bank ,thanks
Go for RD in case you have fixed amount to save. In case you feel you can save more in a month or you expect surplus money any time, go for VRD