![All Bank Fixed Deposit Interest Rate [October 2021]](https://www.businessleague.in/wp-content/uploads/2021/10/fixeddeposit-12-1481513963.jpg "All Bank Fixed Deposit Interest Rate [October 2021]")
Bank FD is the oldest and most reliable investment type in India.
10 years ago, when people thought of investing, then Bank Fixed Deposit was the only option in their mind. Through FD, parents want to ensure an amount for the goal of children’s education, marriage, retirement. The biggest reason for choosing a bank FD is that people do not want to drown their hard earned money by taking more risk. But in the last few years, time is changing, different types of investment, technology is coming to the fore, new startups are putting new knowledge of investment in front of the people, at the same time people have started seeing the weakness of FD due to rising inflation rate, youth of the country Want to invest by taking risk in new investment options instead of FD.
In such a situation, there is a question in people’s mind that is FD investment still beneficial? What is decreasing the popularity of FD investment To answer all the questions, let’s know everything about FD investment.
What Is Bank Fixed Deposit
- In bank FD, the amount is deposited for a fixed time at the interest rate fixed by the bank.
- Interest is paid annually on this deposit amount as per the interest rate fixed by the bank.
- The principal deposit plus the interest amount can be withdrawn when the bank FD matures.
- This information about bank FD is known to everyone and it is also very easy to invest.
Benefits of Bank FD:
- Bank FD is a completely safe investment in which you get the benefit of deposit insurance on your amount.
- Under the DIGC Act, an FD investor can get an amount of up to Rs 5 lakh through deposit insurance within 90 days on his FD investment at the time of bank closure or moratorium.
- There is less chance of sinking your investment in a good and government bank, even then you can take advantage of deposit insurance.
- You can also take a loan against the same FD if needed at the time of bank FD.
- Being a secured loan, the bank gives you such a loan immediately.
- The loan amount available on FD is less than the original deposit amount of the FD.
- Deposits in bank FDs get interest at a fixed rate, which is deposited in FD annually or every month, this interest rate remains the same at any time and gives fixed returns to the investor.
- After the maturity of the FD, it can be re-invested in a new FD.
- FD investment can also be done to save tax, in which tax benefit is available on the amount of 1 lakh 50 thousand under section 80C.
- Senior citizens who do FD for retirement planning, such investors are given a higher rate of interest than normal.
- At the same time, senior citizens can take advantage of tax exemption on the amount of 50 thousand more than normal.
- In Bank FD, you can choose the maturity period from 5 years to 10 years, while there is no maximum investment limit.
Types Of Bank FD :
Bank FD is done keeping different investment goals and objectives in front, for this the bank offers different types of FD options.
1 Ordinary Fixed Deposit :
- This simple FD has a good interest rate as compared to the savings account.
- You can do FD in this option for a tenure ranging from 7 days to 10 years.
2 Flexi Fixed Deposit :
- In Flexi Fixed Deposit, the fixed amount invested every month is deducted from your bank account and deposited in FD.
- The interest rate on this type of FD can be low.
3 Tax Saving Fixed Deposit :
- Tax saving fixed deposit provides tax benefit on the principal amount of 1 lakh 50 thousand annually.
- Here also there is a lock-in time of 5 years in which money cannot be withdrawn.
- For tax saving FDs, one has to invest in a lump sum amount.
4 Senior Citizen Fixed Deposit :
- Citizens who are above 60 years of age can invest in this FD.
- There is an option to choose the maturity time as per the requirement.
- For senior citizens, interest is given at a higher special rate.
- At the same time additional tax benefits are also included.
5 Cumulative Fixed Deposit :
- In this option, the interest compounded annually and is finally returned at the time of maturity.
- Just like in the name of Cumulative FD, your savings amount grows.
6 Non Cumulative Fixed Deposit :
- In this type of FD, you can decide when you want to take interest such as annually, every 6 months or every month.
- Citizens retiring or investing for pension can get returns of compounded interest every month through this option.
Bank FD Investment Interest Rate( October 2021)
| Banks | FD Interest Rates |
|---|---|
| Allahabad Bank | 2.90% – 5.90% |
| Andhra Bank | 3.00% – 5.40% |
| Axis Bank | 2.50% – 6.05% |
| Bandhan Bank | 3.00% – 6.75% |
| Bank of Baroda | 2.90% – 6.30% |
| Bank of India | 3.00% – 6.25% |
| Bank of Maharashtra | 2.75% – 6.40% |
| Canara Bank | 3.00% – 5.85% |
| Central Bank of India | 2.75% – 5.00% |
| Citibank | 2.00% – 4.25% |
| Corporation Bank | 3.00% – 5.40% |
| Dena bank | 2.90% – 6.30% |
| Federal Bank | 2.50% – 6.00% |
| HDFC Bank | 2.50% – 6.25% |
| HSBC Bank | 2.25% – 4.50% |
| ICICI Bank | 2.50% – 6.30% |
| IDBI Bank | 2.90% – 5.90% |
| IDFC Bank | 2.75% – 6.50% |
| IndusInd Bank | 3.25% – 7.50% |
| Jammu & Kashmir Bank | 3.00% – 5.80% |
| Karnataka Bank | 3.50% – 6.20% |
| Karur Vysya Bank | 3.50% – 6.15% |
| kotak Mahindra Bank | 2.50% – 4.90% |
| Lakshmi Vilas Bank | 3.60% – 7.50% |
| Nainital Bank | 3.35% – 6.85% |
| Oriental Bank of Commerce | 3.00% – 6.00% |
| Punjab & Sind Bank | 3.50% – 6.55% |
| Punjab National Bank | 3.00% – 6.00% |
| RBL Bank | 3.25% – 7.45% |
| SBI | 2.90% – 6.20% |
| Standard Chartered Bank | 1.50% – 6.10% |
| Syndicate Bank | 3.00% – 5.85% |
| UCO Bank | 2.75% – 5.40% |
| United Bank Of India | 3.00% – 6.00% |
| Vijaya Bank | 2.90% – 6.30% |
| YES BANK | 3.50% – 7.75% |
