Unlocking Financial Growth with Some of India’s High-yield Fixed Deposits
Fixed Deposits (FDs) have long been a popular savings tool among Indian investors. This is due to their low risk, assured returns, and simplicity. FDs are preferred by conservative investors who seek a stable income without exposing their capital to market volatility. Let’s delve into some of the highest FD rates in India and why you should consider this investment option.
Some of the Highest FD Rates in India
Below is a list of some of the highest FD rates in India as of May 2024:
*Disclaimer: These rates are subject to change and may vary at the issuer’s discretion. Thus, check the latest rates on the official websites before booking.
Among these, Bajaj Finance currently offers the highest interest rate of 8.60% p.a. It is an attractive choice for investors looking for high returns. Utkarsh Small Finance Bank and DCB Bank also offer competitive rates of 8.50% p.a. and 8.05% p.a., respectively.
Fixed Deposit Interest Rates for Senior Citizens
Senior citizens often enjoy higher interest rates on FDs compared to regular investors. This additional benefit is aimed at providing better financial security during retirement years. Here are some of the best FD rates for senior citizens in India:
*Disclaimer: These rates are subject to change and may vary at the issuer’s discretion. Thus, check the latest rates on the official websites before booking.
Using an FD Interest Calculator
An FD interest calculator is a useful online tool that helps you estimate the returns on your FDs. By inputting the principal amount, interest rate, and tenor, the calculator provides the maturity amount and the total interest earned. This could help you compare different FD options and choose the one that suits your financial goals.
How to Use an FD Interest Calculator
By following these simple steps, calculate your FD earnings online:
- Enter the Principal Amount: This is the lump sum amount you plan to invest.
- Select the Interest Rate: Input the interest rate offered by the issuer.
- Choose the Tenor: Specify the duration for which you want to invest.
- Compounding Frequency: If you are opting for a cumulative FD, you can see how often the interest is compounded. Some calculators also enable you to check the interest payouts you can get under non-cumulative FDs.
- Calculate: The calculator will display the maturity amount and the total interest earned
For instance, consider you have invested ₹1 Lakh in a Bajaj Finance FD at an interest rate of 8.60% p.a. for a tenor of 3 years. As per these terms, the maturity amount is ₹1,28,082 and the total interest is ₹28,082.
Calculating this manually may take a lot of time, however, it can be quite easy with an online calculator. Once you enter these values in the calculator, it will immediately compute the total interest you can get at maturity.
Tax Implications on FD Interest
Interest earned on FDs is taxable under the Income Tax Act, 1961. The interest is added to your total income and taxed as per your applicable income tax slab. Iif the interest income from FDs exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), a TDS is charged. The current TDS rate stands at 10%. You can claim a deduction under Section 80C for investments in tax-saving FDs up to ₹1.5 Lakhs per financial year.
Why Consider Fixed Deposits?
Besides the high yields, here are some reasons why you should consider investing in an FD:
- Safety: FDs are considered to be one of the safest investment options as they are not influenced by market fluctuations.
- Guaranteed Returns: The interest rate is fixed at the time of investment, ensuring predictable returns.
- Flexibility: Investors can choose the tenor of their FD, ranging from a few months to several years.
- Loan Against FD: Many banks and NBFCs offer loans against FDs, providing liquidity without breaking the deposit.
FDs are a reliable investment choice if you are looking for stable returns with minimal risk. By exploring some of the highest FD rates in India and leveraging tools like the FD interest calculator, make well-informed decisions. This can help you maximise your FD returns. Stay updated with the latest interest rates offered by different issuers, as these can vary.
Investing in FDs not only provides financial security but also ensures that your savings grow steadily over time. Whether you are a regular investor or a senior citizen, choosing the right FD can help you achieve your financial goals with ease and confidence.