There is good news for those who are saving money with a Fixed Deposit in the bank. Recently many banks have announced that they are raising the interest rates of their FDs.
Fixed Deposit is considered as a great choice for those who think that there should be no risk to the money they save.
It offers guaranteed interest on the principal amount for the entire period of time that you have money in your account. It helps to manage multiple FDs at different times.
You can open an FD account with any bank you think has high interest rates on your savings account.
This is entirely your choice, but if you go to any bank that does not have a savings account your KYC and other documentation processes will likely be subject to change.
FD guarantees the security of a fixed amount and regular income. If you have a total amount that you do not want to use for some time, you can put that money in an FD account.
FDs give you a fixed interest rate for as long as you keep the money.
Nowadays it is easy to open an FD account, you can do it through online banking or if you open an FD account at a nearby bank or at the same bank where you have a savings account, you do not need a KYC process and can transfer money through your account to FD.
Senior citizens are offered an additional 50 bps interest on FDs. So by opening an FD account in the name of the elderly at home you will get more interest. You can borrow in your FD, there are some rules for that.
Below are the top 20 banks that currently offer the highest interest rates for FDs. You can conveniently choose between comparing interest rates and periods between 1 and 5 years.