FD Rates: Fixed Deposit (FD) is a safe and profitable investment option. In FD, you get pre-determined interest on your investment. In this, the investor gets returns according to the pre-determined time period and interest rate. This option is better for those who want to keep their savings safe. Know here how much interest the top 10 banks of the country are offering on FD.
Top 10 banks of the country are offering this interest
7.4% interest on 5 year FD for general citizens.
7.9% for senior citizens.
Kotak Mahindra Bank:
Interest on FD of 390-391 days is 7.4% for general citizens and 7.9% for senior citizens.
Federal Bank:
Interest on FD of 777 days is 7.4% for general citizens and 7.9% for senior citizens.
State Bank of India (SBI):
Interest on FD of 2-3 years is 7% for general citizens and 7.5% for senior citizens.
Karnataka Bank:
7.50% interest for general citizens and 7.75% interest for senior citizens.
Bank of Baroda (BOB):
Interest on FD of 400 days is 7.3% for general citizens and 7.8% for senior citizens.
Union Bank of India:
Interest on FD of 456 days is 7.3% for general citizens and 7.8% for senior citizens.
8% interest for general citizens and 8.50% interest for senior citizens.
Bandhan Bank:
8.05% interest for general citizens and 8.55% interest for senior citizens.
IndusInd Bank,
7.99% interest for general citizens and 8.49% interest for senior citizens.
Features of FD
The Reserve Bank of India (RBI) has issued new guidelines on FD, according to which:
Allows penalty free withdrawal for amounts less than ₹10,000.
In cases of serious illness, withdrawal of the entire FD amount is allowed.
Premature Withdrawal and Penalty
Premature withdrawal means withdrawing money before the maturity period of FD.
In this, banks usually charge a penalty of 0.5% to 1%.
Fixed deposits are a safe and attractive option for investors. The higher interest available on mid and long-term FD makes it profitable.
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