Which bank is better for FD? - letsdiskuss
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Anonymous

@Professional | Posted on | News-Current-Topics


Which bank is better for FD?


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Student | Posted on


i think post office fd is better for future financial.


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@Professional | Posted on


Fluidity and variety in the market make it challenging to choose a single financial institution as the best option for fixed deposit investments. While typically it is the highest FD rates, which is taken into account while choosing a fixed deposit scheme, it is vital to note a few other factors too. These can effectively help in arriving at the best interest rate, and consequently, return on investment.


Letsdiskuss


Maturity tenor: Duration for which an individual is investing in his/her fixed deposit account usually affects the offered rate of interest. Long investment tenors for FD can range up to 60 months and are accompanied with the highest interest rates.

Deposit amount: It is important to check if a financial institution allows an investor to save a small sum of money to build their corpus. NBFCs usually allow investors to begin saving with a sum of Rs.25,000.

Interest payout frequency: While financial institutions offer options like monthly, quarterly, half-yearly and annual interest payout, it also affects the total interest earned on a fixed deposit investment.

Ease of investment: Investors should check if their financial institution offers them ease of FD online application and management of their investment accounts. This can be especially helpful not just in keeping track of the returns generated, but also during the renewal of an investment.

Credit option: Option to use an FD investment as collateral to avail a loan can be a convenient option to cope with any financial emergency that might arise. Additionally, these loans have lower interest rates since they are secured against an FD account. Look for such facility to arrive at the best FD option.

Noteworthy, investors who are existing customers or employees of a financial institution are also offered higher interest rates. However, generally, the highest FD rates are offered to senior citizens. Understandably, while fixed deposits remain one of the safest investment options in India, these considerations are essential to zero in on the best financial institution for FD investment.


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