FD Interest Rates: These 5 Banks Giving Highest interest rates on FD, Check Details

FD i.e. Fixed Deposit is the safest place to invest, on which returns are guaranteed with FD Rates. One can invest on FDs with a short tenure of 7 days to a long tenure of up to 10 years. When you invest money in FD, at the same time you get to know how much money you will get after how many years. In such a situation, you can plan any of your work in advance and you will not have to worry whether there will be any fluctuation in your returns in between.

Excellent interest is getting on FD in these 5 banks

1. Interest is paid at a rate of 6.50 percent on a 5-year fixed deposit with IndusInd Bank.

2. If you open an FD with RBL Bank, you will receive 6.30 percent interest.

3. DCB Bank is offering a 5.25 percent interest rate on 5-year fixed deposits.

4. IDFC First Bank will provide 6.25 percent return on 5-year fixed deposits.

5. Interest is getting on FD at Karur Vysya Bank at the rate of 5.80 percent.

FD has many benefits

Many people also propose putting money in mutual funds or other areas rather than getting FDs in order to achieve larger returns. Returns, however, are not guaranteed in such locations So if you want assured returns on your money, then FD is a better option. Not only that, but there are other advantages to doing FD. So, when deciding on an FD, consider not just the interest rate, but also other factors. Let’s know about them.

1. Loan Against FD or Overdraft?

Many people are unaware that by making an FD, they can simply obtain a loan from the bank. Based on this, several banks provide overdraft facilities. Actually, an FD is an assurance to you that if you are unable to repay the loan, the loan money will be repaid by your FD So, when comparing FD to other investments, keep in mind that you can acquire a loan against FD.

2. Insurance cover is available on FD

If you have an FD with a bank, you are protected by the Deposit Insurance and Credit Guarantee Corporation (DICGC). If your bank defaults or becomes insolvent, you will be compensated up to Rs 5 lakh via this insurance policy, which would comprise both principal That is, not only will your return be assured, but you will also be guaranteed up to Rs 5 lakh.

3. Benefit of Free Life Insurance

There are numerous such banks, thus individuals who have an FD here receive an extra benefit of free life insurance. Banks make such offers in order to entice more people to invest in their funds. Under this scheme, banks provide their customers with life insurance in the amount of their FD. However, there is an age restriction. If noticed, banks analyse their own risk and provide consumers with life insurance, which is a profitable arrangement.

4. Tax benefits

If you make a fixed deposit for 5 years or more, you can claim a tax deduction under Section 80C of the Income Tax Act of 1961. This allows you to claim a tax exemption of up to Rs 1.5 lakh each year. However, if you make an FD for less than 5 years, you must pay tax. If the total amount of interest earned from all banks in a year exceeds Rs 40,000, it will be taxed.

5. Guaranteed Returns

The most crucial aspect of FD is that it provides guaranteed profits. That is, if you are preparing for 5 years, 10 years, or any number of years, you will know exactly how much money you will receive upon maturity in an FD. This is due to the fact that fixed returns are available on FDs. On the other hand, the returns on investments such as mutual funds, NPS, and ELLS vary year to year and are determined by the movement of the stock market.