The interest rate of the fixed deposit changes from time to time and it varies from bank to bank. The interest rate depends on the amount of investment and tenure. So Indianmoney Reviews came up with an article To Know all the FD Interest Rates before investing in them. 

 

Senior Citizens get around 0.5% more. Few Small Finance Banks offer very attractive rates on fixed deposits. But remember one needs to look for safety while investing in Fixed Deposits.



FDs Enjoy The Following Advantages:



Once you invest in FDs, the returns are assured.

The investor can choose to receive the interest payouts monthly or annually.

FDs are much safer than shares.

FD accounts can be opened for various tenures. It could be as less as 7 days and up to 10 years.

Majority of banks offer loans against FD. This assists the account holder during a financial emergency.



Deposit Insurance and Credit Guarantee Corporation (DICGC)



This is a subsidiary of RBI launched for the purpose of ensuring guarantees against all bank deposits like saving, current and fixed recurring deposits. A maximum limit of Rs 5,00,000 against each deposit is ensured. DICGC plays a major role in creating trust factors in the minds of the depositors. All banks irrespective of their size are regulated by DICGC. It has the right to cancel a bank's registration if it fails to make premium payments for three consecutive half yearly periods. 



Indian money company reviews one of the key points with a bank FD is that the changes in the FD rates will impact only prospective investors. Those who are already invested in FDs will get rates that were applicable when the investment was made. This means that if one invests in a three-year FD at 7.5% per annum, then the interest rate remains at this level for the entire duration of the deposit even if rates change in the interim period.



The fixed deposit schemes offered by most banks can be availed for tenures ranging from as short as seven days to as long as 10 years. Few of the banks, such as the State Bank of Patiala, IDBI Bank, the Ratnakar Bank, etc. offer FDs that stretch to 20 years as well.  The interest on FDs is compounded on a quarterly basis.



The interest rate on FDs is entirely taxable. Our article Fixed Deposit , Interest , TDS, Tax,Income Tax Return, Refund discusses about FD interest rate, TDS and ITR





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