Invest in DF? Here are some best FD interest rates for a 5 year term

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Invest in DF? Here are some best FD interest rates for a 5 year term

Posted on April 8, 2022

While investments are crucial to growing your finances, planning for them is more important. The right investment choice can help build wealth while providing other benefits. You should choose the one that best suits your financial aspirations with several investment options available. A smart option that offers secure returns is to invest FD online in fixed deposit, a trusted vehicle for the Indian investor.

A fixed deposit is a secure investment option that you can count on for the risk-free growth of your money. The returns on an FD depend on the FD interest rates offered, and once booked, the rate remains constant throughout the term. Tenor is also a factor that affects India’s FD rates. Issuers generally offer a term ranging from a few months to 5 years, and the interest rate offered varies according to this schedule.

Generally, you’ll get the best rates on an FD if you choose a longer term, and there are benefits to doing so. Your corpus benefits from the capitalization of interest, thus increasing your income considerably. You also get the highest interest rate offered, which can act as an inflation hedge for the entire window. Read on to get an idea of ​​the FD rate offered by leading issuers for five years.

Banks and NBFC with the best FD interest rates for non-senior citizens

Disclaimer: All FD interest rates listed in the table above are as quoted on the official issuer portals as of April 8, 2022.

Bank and NBFC with best FD interest rates for seniors

Disclaimer: All FD interest rates listed in the table above are as quoted on the official issuer portals as of April 8, 2022.

Factors That Affect FD Interest Rates

Many factors influence the interest rates applicable to DFs. One of them is the duration of the investment. As explained above, issuers are more likely to offer higher long-term interest rates than short-term ones. Apart from this, the following factors also influence a change in FD rates in India.

  • National economic climate

Multiple factors contribute to the economic conditions in the country, affecting India FD rates. The nation’s GDP presents a picture of the financial situation, and a higher GDP often leads to higher interest rates. Apart from this, inflation and recession also influence FD interest rates. Generally, FD rates are higher when there is inflation, so people can consider saving instead of spending. As inflation goes down, interest rates also go down.

The repo rate, which is decided and levied by the RBI, also plays a role in determining the FD rates in India. This is the rate at which banks borrow money from the RBI. A rise in the repo rate will in turn lead to a rise in FD interest rates.

The FD interest rates offered will also depend on your age. Older people tend to get a higher interest rate than people under 60. FDs often serve as a source of stable income, giving them access to funds for day-to-day expenses.

With FD interest rates of up to 7.05% per annum, Bajaj Finance Fixed Deposit is among the best secure investment options. You can start with an investment of Rs. 25,000 for a term of up to 5 years. Plus, digital layouts can get you started in minutes. You can use the DF calculator available on the platform to see your returns for different interest rates, amounts and FD maturities. This way you can plan and start your investment accordingly. Invest online in 4 simple steps and start your investment with the best FD interest rates.

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