Fixed Deposits Interest Rates 2019

Fixed Deposits are financial instruments offered by Non-Banking Finance Corporations (NBFCs) and banks in India. They are the accounts where the amount is deposited for a given period of time. FD interest rates remain the same during the deposit period. At the end of the term, FD account holders get the principal amount plus the interest. FDs are alternatively called term deposits.

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Key Features of FD

1. Individuals can earn a higher rate of interest by opening an FD account as compared to regular bank accounts.
2. FD account holders cannot deposit more money into their existing FD accounts. They can do it by opening a new FD account.
3. FDs are easy to renew and have flexible tenures. They offer a guaranteed return unlike other investment options.
4. Loans can be taken against FDs whenever required. In general, they are considered to be risk-free investment options.
5. FD investors are also entitled to get tax benefits under Section 80C of the Indian Income Tax, 1961.

Prime Benefits of FD                                          

1. FDs are renowned to be offering greater stability and there is no risk of the loss of the principal amount.
2. Periodic interest payouts are allowed to help account holders manage their monthly expenses.
3. They remain unaffected by market performance. For example, the share price of a particular company keeps fluctuating in sync with market performance. The stockholder earns profits when the stock price goes up and vice versa.
4. Some banks provide greater returns to senior citizens.

See Also: Know Fixed Deposits

How Can I Open an FD Account?

An FD account can be opened offline and online. Your internet banking account has to be active so that you may open it by filing the online application form. It is good if you can visit the nearest bank branch, which will ask you fill and submit the application form. Deposit the money and collect the receipt. As an identify proof, you may submit your passport, PAN card, driving license, photo ration card, senior citizen card or any other valid document. The documents that can be submitted as an address proof include your passport, electricity bill, telephone bill and bank statement with cheque or ID granted by the post office.

How Can I Choose the Best FD?

The best FD can be chosen on the basis of several aspects. The important aspects to consider are the rate of interest, the credibility of the bank or financier, the tenure of the FD, the interest payout option, and the penalty rates. For instance, since different banks offer different interest rates, you shall be able to choose an FD with a higher interest rate if you can compare and analyze.

Types of FD

FDs are broadly categorized into three categories, which include regular FDs, tax-saving FDs and senior citizen FDs. In case of regular FDs, money can be invested for a fixed term, starting from 1 week to 10 years and the interest rate on such deposits is pre-determined. In case of tax-saving FDs, the principal of the FD attracts a total tax deduction of Rs.1.5 lakh u/s 80C of the Act. Lenders also offer FD accounts exclusively for senior citizens.

See Also: Types of fixed deposits

Fixed Deposit Standard by Bandhan Bank

Bandhan Bank gives standard fixed deposits to enable customer meet their investment objectives faster. Customers will get a better interest rate than regular savings bank accounts. The minimum deposit is Rs.1,000. The tenure starts from 7 days to 10 years as per your investment requirements. Monthly and quarterly interest payouts are available. These products provide an option to withdraw the deposit partially or close the account prematurely. Nomination, OD and loan facilities are also available.

Floating rate FDs

While normal FDs earn a fixed rate of interest, floating rate FDs earn a floating rate of return. Floating rate FDs shall be linked to benchmark interest rates, which differ among lenders. The interest is reset every quarter. They have a lock-in period of 1 year. When floating rate FDs were new to the market, R K Bansal, who was the Executive Director of IDBI Bank, had said that it shall be difficult to convince the retain customers about the benefits of floating rate FDs.

Fixed Deposit Interest Rates from the Top 3 Banks in 2019

Kotak Bank FD Rates 2019

Interest rate for regular customers	Interest rate for Senior Citizens	Tenure
3.50%	4.00%	7 – 14 days
4.00%	4.50%	15 – 30 days
5.00%	5.50%	31 – 45 days
5.25%	5.75%	46 – 90 days
5.75%	6.25%	91 – 120 days
6.00%	6.50%	121 – 179 days
6.25%	6.75%	180 days
6.40%	6.90%	181 days – 269 days
6.40%	6.90%	270 days
6.50%	7.00%	271 days – 363 days
6.75%	7.25%	364 days
6.75%	7.25%	365 days – 389 days
6.90%	7.40%	390 days
6.80%	7.30%	391 days – lower than 23 months
6.80%	7.30%	23 months
6.80%	7.30%	23 months 1 day -lower than 23 months
6.80%	7.30%	2 years– lower than 3 years
6.75 %	7.25%	3 years and above but less than 4 years
6.50%	7.00%	4 years and above but lower than 5 years
6.25%	6.75%	5 years and above up to and inclusive of 10 years

Yes Bank FD Rates 2019

Interest rate for regular customers	Interest rate for senior citizens	Tenure
5%	5.50%	7-45 days
6.25%	6.75%	46-90 days
6.25%	6.75%	3 months to lower than 6 months
6.85%	7.35%	6 months to lower than 9 months
7.15%	7.65%	9 months to lower than 1 year
7.25%	7.75%	1 year to <=10 years
Special interest rates
7.85%	8.35%	12 months 10 days to 12 months 20 days
7.55%	8.05%	18 months 8 days to 18 months 18 days
7.75%	8.25%	2 Years to lower than 3 years

HDFC Bank FD Rates 2019

Interest rate for regular customers	Interest rate for senior citizens	Tenure
3.50%	4.00%	7-14 days
4.25%	4.75%	15-29 days
5.50%	6.00%	30-45 days
6.00%	6.50%	46 days to 6 months
6.50%	7.00%	6 months 1 day – 9 months
6.75%	7.25%	9 months 1 day to lower than 1 year
7.00%	7.50%	1 year
7.00%	7.50%	1 year – 1 year 16 days
7.10%	7.60%	1 year 17 days – 2 years
7.30%	7.80%	2 years 1 day – 3 years
7.25%	7.75%	3 years 1 day – 5 years
7.00%	7.50%	5 years 1 day – 10 years

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