We all wish to save every penny we can. But sadly, some expenses crush that dream of having significant savings. While some suggest that investments help save and earn profits, it can be too risky for many. And so, many people seek the safest mode of saving and still making profits- Fixed Deposits.
Fixed Deposits(FDs) are the solution for those who want to live a relaxed life. But, how to get the best FD rates in India? Let’s decode FD and how you can get the best FD rates for your investments.
Simplifying Fixed Deposit
Before discussing top FD rates in India, let’s understand in detail what a Fixed Deposit is. A Fixed Deposit, also known as an FD, is an investment tool offered by banks and financial institutions to their customers. An FD account allows you to invest a significant sum of money for a set length of time at a predefined rate of interest. You get a lump sum payment plus interest at the end of the term, which is an excellent way to save money. Fixed deposit accounts are available at a variety of interest rates.
You have the option of choosing a fixed deposit for a period ranging from 7 to 10 years. This is why a term deposit is sometimes referred to as an FD. When you open a fixed deposit account at a set interest rate, you will receive the set rate of interest irrespective of the market volatility or changes in interest rates.
Characteristics of a Fixed Deposit
Let’s take a look at some of the primary characteristics of a Fixed Deposit to understand why they are so popular among the investors:
Fixed Returns: A Fixed Deposit offers fixed returns. You get the exact rate of return that was agreed upon at the time of investing in FD. This is unlike market-linked investments that provide returns based on market sentiments. One of the peculiar benefits is that even if there is a fall in interest rates, your interest earnings do not change. This makes the fixed deposit more secure than other investments.
Interest Rates: FD interest rates depend upon the tenure of investment. For longer tenure, you will receive more interest as compared to the shorter tenures. If you want to know the current FD interest rates, visit Kuvera.
Multiple Tenure Options: While the fixed deposits have a lock-in period, it’s entirely at your discretion to select the tenure of investment. You can invest in fixed deposits for as short as 7 days to as long as 10 years. It entirely depends upon your investment goal and time horizon.
Return on Investment: As stated above, the amount of interest that you earn FDs depends on the tenure of investment. Furthermore, the returns on your investment also depends on whether you choose to receive interest on a regular basis (known as non-cumulative fixed deposits) or reinvest the money (known as cumulative fixed deposits). With cumulative FDs, you get the benefit of compounding, i.e., you earn interest on both principal and interest.
Loans Against FD: There might arise certain emergency situations warranting immediate need of funds. Fixed deposits involve a lock-in period for the tenure of investment that you selected. Prematurely withdrawing your fixed deposits can lead to penal charges and loss of interest income. What’s the solution?
The solution lies in the loans against fixed deposits. Yes, you read that right!. You can avail of a loan against the fixed deposits just like you take a loan against your properties. This saves you from penal charges while allowing you to earn interest income. Being a secured loan, the interest charges are also reasonable for loans taken against fixed deposits.
. Steps to Invest in FD on Kuvera
Step 1: Download the Kuvera app or visit our website and sign up.
Step 2: Complete your KYC with PAN, Aadhaar, and In-person verification through video. It is mandatory to complete KYC compliance under the Prevention of Money Laundering Act, 2002, and the rules framed there under, read with the SEBI Master Circular on Anti Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries.
Step 2: Select the ‘Invest’ option from “Home“
Step 3: Select ‘Fixed Deposits’
Step 4: You will see a list of multiple fixed Deposit options on Kuvera, sorted by tenure, bank, NBFC etc. Click on any FD to check its tenure, interest rate, and minimum deposit required. To be sure, check the lock-in period of the fixed deposit.
Step 5: Select the fixed deposit you want to invest in, and tap on “Start FD”.
Step 6: You will be asked to provide your primary bank account details – IFSC code, account number and account type.
Top FD Rates in India
While most investors find FD quite intriguing, they often ask one question – what are the top FD rates in India? Well, the answer for this requires research before investing. However, the comparison is made simple with Kuvera, which allows you to find some of the highest interest paying fixed deposits on a single platform. You don’t need to visit the websites of multiple banks and financial institutions to analyse their FD rates and tenure. Just visit Kuvera and get the top FD rates in India along with the tenure of investment.
Kuvera also provides a stock trading platform. If you are looking for the best stocks to buy today, Kuvera can help you analyse various stocks, understand their prospects (including the financial data of the company) and invest at the same time. Whether it’s fixed deposits, stocks or any other investment option, Kuvera is the one-stop platform to meet all your investing needs. Start investing now!