Overview of FD Interest Rates of Indian Banks in 2018 - Financing Panda: Latest News on Finance, Loan, Business


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Wednesday, May 30, 2018

Overview of FD Interest Rates of Indian Banks in 2018

FD is an ideal financial instrument for investing money. All major and minor banks in India offer fixed deposit schemes with attractive interest rates. It is one of the best investment options which provide assured returns without any market related risks. You can get the interest in four different payout frequencies - monthly, quarterly, half yearly and yearly.

In the segment below, you will find a brief description on an FD (Fixed Deposit):

A Fixed Deposit

FD is the best and safest savings avenue- it allows you to deposit your savings for a particular time such as a month, 6 months, 1 year, 2 years or as long as 10 years. Fixed deposit accounts provide you a much higher rate of interest in comparison to a saving account. In case of fixed deposit investments, risks are almost negligible. So you can rely on the returns from an FD for any emergency situation, weddings, for a child’s education, and for other needs.

Nearly all banks provide the facility to open an FD account online, without the investor having to visit a branch. Anyone who has saved some extra money or has received a lump sum amount which might not be required for immediate or future use can invest the same in an FD. This could be as small an amount as Rs 10,000 and can go up to a crore as well.

Compare Fixed Deposit Rates from Various Banks

Different banks provide the different interest rate so first you should have to check which bank provide you best and highest interest rate on fixed deposit investment. So, In below table you can get the comparison of 3 private banks and 3 govt. banks which help you to understand which provide you attractive interest rates in 2018 on FD scheme.

Different banks provide different interest rates as per their deposit policies- so, first you will have to check which bank will provide you the best (or highest) interest rate on a fixed deposit investment. So, for your convenience, given below is a table from which you can compare among the top 3 private and government banks. This table will help you to identify where to invest your money to earn an attractive rate of interest through an FD scheme in 2018:

Private VS Government Bank 

Private BanksInterest RateGovt BanksInterest Rates

From the above table, you can see that ICICI bank provides the highest rates on FDs among the private sector banks while Punjab National Bank (PNB) provides a high interest rate on its fixed deposits among the public sector banks. Hence, before opening an FD account, you should check which bank is offering the best rate at that point in time.

Benefits of Investing in an FD (Fixed Deposit)
  • None to minimal risk
  • Get a Loan Against your FD
  • Save on Income Tax
  • High Returns on Senior Citizen FDs
  • Deposit Any Amount
  • Option of reinvesting the deposited amount
Drawback of FD (Fixed Deposit) 
  • Money parked in fixed deposit stays locked in for the chosen tenure
  • Interest income takes hit when you break the FD prematurely
How to Open Fixed Deposit Account

There are two options available when you need to open an FD- the first one is online (does not require the investor to visit a branch of the bank) and the second one is offline (by visiting a branch).

If you are familiar with internet banking and your account is enabled with this feature, then it is suggested that you open the account online. If your account is not internet banking enabled, then your have the option of visiting a branch to open your FD.

Online Process: As mentioned earlier, if you have the facility of internet banking enabled for your bank account, then you can open your FD account in a few simple steps- just fill up the online form without having to submit any documents because the bank already has your KYC details.

Offline Process: You can visit your nearby bank branch and fill the form manually. Then you will have to submit the duly filled up form with the required documents, following which you will get a receipt.

What Documents are Required for Opening FD

You need the following list of documents for opening a fixed deposit account

ID Proof
  • 3 to 4 Passport size photos
  • Pan Card
  • Voter ID Card
  • Driving License
  • Passport
Address Proof
  • Passport
  • Water Bill
  • Telephone Bill
  • Electricity Bill
Conclusion: Considering the financial goals you have set for yourself and the timeline within which you wish to achieve the same, you can choose the right FD scheme to park your funds in. Here, you need to assess how well the offerings of a particular bank matches your requirements and goals. A prudent investor will invest his/her hard earned money by evaluating all options among FDs and picking the one (or ones) that fit the bill.

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