Posted 08 Apr, 2020 | Current Topics
What is the best FD rate in Indian Bank?Add Answer
Fincare Small Finance Bank is the main bank in India which is giving most elevated pace of enthusiasm on fixed store. Between two years 1 day to three years they are offering 9% and for senior residents 9.5%. contact 7211188283 for more data.
With numerous financial institutions offering fixed deposit schemes, it is difficult to pinpoint on one for best FD rates. It is especially difficult since these rates are regularly revised based on numerous factors. However, there are a few factors which an investor can keep in mind to ensure he/she avails the best possible rate of interest on the investment. Along with noting these factors, investors should also consider using an online calculator to compare different options and make a close estimate of the returns.
Investment tenor: Total tenor for which an individual is investing in his/her fixed deposit account is a vital factor which decides the rate of interest that is offered. Financial institutions offer higher rates of interest on FD account investments for lengthy tenors. Generally, NBFCs offer a maximum of 60 months as FD tenor, while the minimum term can be up to 12 months.
Age of investor: Age of an investor depositing in a fixed deposit account is another factor which helps in deciding the rate of interest offered on such investments. Investors who are senior citizens are usually offered a higher rate of interest for substantial corpus build-up in a short period. Vital to note, along with senior citizens, often financial institutions offer existing customers and employees their best FD rates too.
While these factors greatly affect the rate of interest and your decision for FD application to a financial institution, it is vital to note a few additional facts. Financial emergencies can come up at any time, leading to withdrawal or breaking of an FD account. Under such circumstances, a penalty is usually levied on this investment along with reduction in its applicable rate of interest.
This can immensely impact the total earning, and it is advisable that investors compare this option against that of loan against FD to ensure they are subjected to the least reduction of investment return.