FDs are considered some of the best investments in India as they provide a guaranteed return with high stability. FDs or fixed deposits, have evolved into various shapes and sizes, like short-term and long-term FDs. These deposits can even get you a bunch of other benefits, like an FD-backed credit card, a loan, insurance, and more.
In 2024, which are the best FDs in India that you can invest in? Let’s learn about them in this blog.
What are Fixed Deposits?
In India, fixed deposits (FDs) are a well-liked choice for investing money. Investors put in a specific amount of money for a set period of time at a fixed interest rate. These deposits are seen as a secure option and offer definite returns when they mature.
For instance, if someone decides to invest ₹100,000 in a fixed deposit for 5 years at an interest rate of 7% annually, the total amount received at maturity can be calculated like this: Maturity Amount = Principal Amount + Interest Earned = ₹100,000 + (₹100,000 * 0.07 * 5) = ₹135,000.
Fixed deposits provide a range of choices when it comes to duration, with options lasting from a short period to as long as several years. They also offer various ways to receive interest payments, including monthly, quarterly, or at the time of maturity. Many investors opt for fixed deposits due to their reliability, ease of access to funds, and guaranteed profits. This makes them a popular investment option in India.
Best Fixed Deposits In India In 2024
- IDBI Bank has tax-saving fixed deposits available with interest rates between 6.10% and 6.85% for the year 2024. These fixed deposits offer a secure investment option for investors and also provide tax benefits under Section 80C of the Income Tax Act.
- Punjab National Bank (PNB) offers tax-saving fixed deposits with interest rates ranging from 5.80% to 6.30% for 2024. Investors can take advantage of these fixed deposits to enjoy competitive interest rates and avail of tax deductions.
- IDFC First Bank offers tax-saving fixed deposits with a fixed interest rate of 6.50% for 2024. These FDs provide stability and tax-saving benefits, making them appealing to investors.
- Axis Bank also provides tax-saving fixed deposits with interest rates ranging from 6.10% to 6.85% for 2024, offering a secure way to save on taxes with competitive interest rates.
- IndusInd Bank offers a Tax Saver Scheme with fixed deposits that have interest rates between 6.75% and 7.50% for the year 2024. These deposits are designed to provide investors with attractive returns and tax-saving advantages, making them a popular choice for investment.
- State Bank of India (SBI) also has a tax-saving FD option with interest rates ranging from 6.10% to 6.60% for 2024. These fixed deposits offer investors stability, tax benefits, and competitive interest rates, making them a reliable investment option.
How Do I Open A Fixed Deposit Account?
To open an FD account, you can choose between online and offline methods.
Online FD opening is the easiest if you already have an online banking account. Just log in to your net banking account, complete the online FD application form and submit it. There is no need to redo your KYC, as the bank already has it. You can also transfer funds from your current account using internet banking to kickstart your FD.
If you want to open an FD account offline, simply go to your bank’s nearest branch. You’ll need to fill out an application form and provide all the necessary details. Don’t forget to submit the form along with the required documentation. Once you deposit the specified amount, you’ll receive a receipt confirming your deposit.
Opening an FD account, whether it’s done online or offline, is a simple and convenient process that offers flexibility to investors.
To Summarise
FDs are a great way to get lucrative returns on the money that you keep with a bank. As the times have changed, fixed deposits not only provide good interest rates but also provide other benefits like FD-backed credit card, insurance and much more. In 2024, some of the best bank FDs are from PNB, SBI, Axis Bank, HDFC Bank, etc. You can easily open an FD with these banks, either online or offline.
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FAQs
What are FDs?
Fixed Deposits (FDs) are a popular investment option where investors deposit a specific amount of money for a fixed period at a predetermined interest rate.
How do FDs work?
FDs offer assured returns upon maturity based on the deposited amount, duration, and interest rate, providing a secure investment avenue.
Which banks offer the best FD rates in 2024?
In 2024, banks like IDBI Bank, PNB, IDFC First Bank, Axis Bank, IndusInd Bank, and SBI will provide competitive interest rates on FD schemes.
How can I open an FD account?
FD accounts can be opened online by filling out an application form on the bank’s website. They can also be opened offline by visiting the nearest bank branch and submitting the required documents.
What are the benefits of investing in FDs?
FDs offer stable returns, tax-saving benefits, flexible tenure options, and easy access to funds. This makes them a preferred choice for risk-averse investors.
