Investment in a fixed deposit account earns a range of interest rates. The interest rate on deposit in a fixed deposit or FD account today depends on factors such as the bank, the amount of investment and the maturity period. While most banks today offer higher interest rates to senior citizens than the general public, the investor can choose from a number of maturity periods available as per his or her investment goal. Top banks today, from state-run State Bank of India to its private sector peers ICICI Bank, HDFC Bank and Axis Bank, pay an interest rate of 3.5-7.75 per cent on deposits of below Rs 1 crore in a fixed deposit of maturity period up to one year.
Here's a comparison of interest rates paid by SBI, HDFC Bank, ICICI Bank and Axis Bank on fixed deposits up to Rs 1 crore:
State Bank of India (SBI)
HDFC Bank
ICICI Bank
Axis Bank
Wealth planners say that fixed deposits are suitable for conservative investors, or those who are not willing to risk their money for an opportunity to earn higher returns.
RECOMMENDED FOR YOU
POPULAR