How to Choose the Best FD Rates in India - Financing Panda: Latest News on Finance, Loan, Business


Post Top Ad

Post Top Ad

Monday, September 10, 2018

How to Choose the Best FD Rates in India

Fixed deposits are known to be one of the best savings options if you are starting out your investment portfolio. FD interest rate determines your returns over the course of time. This allows you to plan your future finances accordingly.

Term deposits or deposits locked in for a certain period of time are known for good returns. You can look for best Term Deposit Interest Rates 2016 by doing research online. Once you've invested, your money gathers interest at a constant rate throughout the term.

But, you've a number of options to look out for when you are looking for best fixed deposit rates. You can start by settling for best fixed deposit rates for 1 year. You can even go and invest in company fixed deposits.

Here are few other things you can keep in mind when choosing best fixed deposit rates in India.

Do Thorough Research

Different banks offer different fixed deposit rates and different tenures too. So, to find an appropriate FD interest rate, check out and compare the various interest rates offered by the lender. This lets you find what kind of options you have before you lock in the money.

Note that a fixed deposit interest rate remains constant. So, selecting from best Term Deposit Interest Rates 2016 to settle for best fixed deposit rates for 1 year at least should be your priority. Also, fixed deposits of up to Rs.1,00,000 carry a deposit insurance. So, you can break up your fixed deposit amount (if higher than 1 lakh) into smaller sums of one lakh and receive this benefit.

One of the other ways in which you can make the best use of your fixed deposit money is to deposit it in different banks for different tenures. This lets you avail better returns over a course of time.

Look out for various available options

There are various ways in which you can invest in a fixed deposit. If you aren't sure how to start, you can choose from the best company fixed deposit rates offered by the company you are working for, in case they offer such an option.

Here, you invest in your company’s account for a fixed period of time for a higher interest rate. But, the nature of these kind of fixed deposits is unsecured. So, do take advice of a credible financial expert before you invest. This can save you a lot of trouble later on.

You can also reuse the returns on fixed deposits as investments for financial gain.

Remember, that the interest earned on your fixed deposit is taxable income. The banks or corporate would deduct a certain percentage from your return if it exceeds Rs. 10,000 in a year.

Choosing the best fixed deposit rates is a matter of financial planning and thorough research. Your FD interest rate depends on the scheme you opt for. This is in conjunction with other factors like the bank or corporate house you're investing with. There's also the tenure of your deposit to consider.

But, do thorough research before settling in for the best fixed deposit rates in India. It can save you a lot of time and effort when you know what to expect before you start investing. That time can ultimately be used elsewhere to invest in other deposits. That can be more of a profit for you, ultimately keeping your finances safe. 

No comments:

Post a Comment

Post Top Ad