Which is the Best FD for investment in 2021?

Fixed deposits (FDs) are a safe way of saving and investing money used by various demographics across India. FD offers assured returns that can be calculated beforehand based on the interest rate and the number of years for which the investment has been made. These investment tools are offered by banks, NBFCs and the post office.

The rates of interest offered by each bank or company vary based on the prevalent FD interest rates. The interest rate for the general public and senior citizens also vary drastically. Here’s a look at some of the best FD interest rates offered in 2021-

Bank Regular interest Senior citizen interest
Bajaj Finance 6.5% 6.75%
Shriram City 8.84%  9.24%
Yes Bank (special rates) 6.50% 7.00%
Fincare Small Finance Bank 6.30% 6.80%
Mahindra Finance 6.30% 6.55%
Sundaram Finance 6.25% 6.75%
KTDFC 6.00% 6.25%
ICICI Home Finance 5.55% 5.80%
ICICI Bank 5.15% 5.65%

Before you invest in a fixed deposit, remember that the returns vary based on a number of factors. For example, if you opt for a cumulative FD where the interest is compounded and reinvested, you will receive higher returns than a non-cumulative FD.

In the case of a non-cumulative FD, you will be required to choose a payout period whether monthly, quarterly, semi-annually or yearly. The interest and the total amount receivable will be determined by which period you choose and will be lower than the returns of a cumulative FD.

Conclusion

Before choosing the right fixed deposit for you, you must routinely check the interest rates offered by the post office, banks, and other companies. FDs are an attractive investment because they give assured returns and a surety that the total amount will be returned to you with compound interest. These factors make fixed deposits a good fit for all manners of investors.

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