A fixed deposit scheme is the best option to save and preserve a part of your savings and to get consistent returns on it in the longer run. The fixed deposit will offer a uniform flow of interest that is more reliable than mutual funds or equity investments as it is unaffected by the fluctuating market performance. However, before investing in fixed deposit with any bank or financial company, a person should consider certain points that are significant for making an informed decision.
Any investor opting for fixed deposits should consider the following points before investing:
- Finding the right financial organization and service is a must for any investors who are opting for term deposit.
- Check out different banks and NBFCs for fixed deposit policies for the investors. Some financial companies offer the short term deposit for short period with decent interest rates whereas some offer long term deposit for a longer period with better interest rates. The interest rates will change from bank to bank.
- The person can choose the best term deposits based on the facts and figures provided by the financial institutions.
- Look a trustworthy name that has no history of fraudulent activities.
- A lot of financial organizations will offer FD policies and the interest rates are also very lucrative. However, you can check their CRISIL or ICRA rating to know about their credibility. For instance, Bajaj Finance has a FAAA rating from CRISIL and MAAA from ICRA, making it one of the most credible companies for Fixed Deposits.
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Top banks offering fixed deposit
The investor can look through the list of top banks which provides high rate of interest, and can compare the fixed deposit rates according to their needs and requirements. The rate of interest is dependent on the period of your tenure.
| Name of the bank | Interest rate | Tenure |
| Axis bank | 3. 50% to 7. 00% p.a. | 7 days to 10 years |
| Bank of Baroda | 4. 50% to 6. 70% p.a. | 7 days to 10 years |
| Bank of India | 5. 25% to 6. 35% p.a. | 7 days to 10 years |
| Canara bank | 5. 75% to 6. 20% p.a. | 7 days to 10 years |
| Central bank of India | 4. 80% to 6. 55% p.a. | 7 days to 10 years |
| HDFC bank | 3. 50% to 6. 50% p.a. | 7 days to 10 years |
| ICICI bank | 4. 00% to 7. 00% p.a. | 7 days to 10 years |
| IDBI bank | 6. 25% to 7. 00% p.a. | 7 days to 10 years |
| State bank of India | 5. 75% to 6. 85% p.a. | 7 days to 10 years |
Top banks for fixed deposit for Senior citizen
The list below is a list of top banks which offers highest rate of interest for senior citizens. The rate of interest will be slightly higher than the regular fixed deposit. Compare the rate of interest of the following banks and then choose the term deposit.
| Name of the bank | Interest rate | Tenure |
| Axis bank | 3. 50% to 7. 50% p.a. | 7 days to 10 years |
| Bank of Baroda | 5. 00% to 7. 20% p.a. | 7 days to 10 years |
| Bank of India | 5. 25% to 6. 85% p.a. | 7 days to 10 years |
| Canara bank | 6. 25% to 6. 70% p.a. | 7 days to 10 years |
| Central bank of India | 5. 30% to 7. 05% p.a. | 7 days to 10 years |
| HDFC bank | 4. 00% to 7.00% p.a. | 7 days to 10 years |
| ICICI bank | 4. 00% to 7. 50% p.a. | 7 days to 10 years |
| IDBI bank | 6. 75% p.a. | 7 days to 10 years |
| State bank of India | 6. 25% to 7. 35% | 7 days to 10 years |
Apart from these banks the following NBFCs are also great options when you want to invest in Fixed Deposits:
| Name of NBFC | Interest rates for fixed deposit (Regular) | Interest rates for fixed deposit( senior citizens) | Fixed deposit term |
| Bajaj Finance | 8. 00% to 8. 60% | 8. 35% to 8. 95% | 1 year to 5 year |
| HUDCO | 7. 5% | 7.75% | 1 year to 3 years |
| LIC housing finance limited | 7. 30% | 7. 40% | One year |
| Mahindra finance | 7. 80% | – | 3 years |
| Shriram city union finance | 7. 50% | 7. 70% | One year |
After comparing the rate of interest from all the top banks and NBFCs which are offering higher interest rates, Bajaj Finance is one of the best options for any person when they want to invest in the higher interest rates fixed deposits and flexible tenors provided to the customers.