Do you know which bank gives highest interest rate on FD schemes? Recently after the interest rate cut, the FD interest rates were dropped heavily. Fixed deposit schemes are one of the most trusted investment options for any person.
Now after reducing interest rates, which bank is best for fixed deposit in 2016? In this article I will share the best 10 banks with the FD interest rates so that you can easily compare interest rates on fixed deposits before investing. As usual on fixed deposit schemes for senior citizens are getting highest interest rates, although the rate has been reduced badly.
Best 10 Banks offering Highest interest rats on FDs in 2018
Most people started planning any kind of investment in the end of the of the year only. So, if you are planning to invest in 2016 with a clear intention of investment, then I am sure that you have excluded life insurance policies from your list. Now if you are looking for some safe & risk free guaranteed investment options in 2016, then I thing the fixed deposit schemes offered by various banks are best investment tools of anytime. In this article I will share such top 5 bank FDs to invest in 2016 and complete a checklist of your personal finance planning 2016.
Bank Fixed Deposit schemes are always the trust worthy and safest way of investing your money. After the recent changes in RBI rates, the interest rates of FDs has been revised and they have come down a little bit. But still if you are not comfortable to invest in stock market, you should put you money in any of the bank FDs only.
Here I am considering only Fixed deposit schemes with min tenure of 5 year only. Because many people invest in FDs to get income tax exemption only. But still if you have any other short term goals, then you can definitely choose their shorter duration FDs as well.
Which Bank Provide Highest Interest Rate on Bank Fixed Deposits (FD)
Here is the chart of 10 best fixed deposit plan / schemes in India to invest in 2016. If you are looking for more interest rates and also ready to take little extra risk then you can also check for best company fixed deposit schemes in India as well.
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Top 10 Popular Banks Latest Fixed Deposit Scheme Interest Rate 2016
|Fixed Deposits with Bank||Tenure||Interest Rates|
|State Bank of India||7 days||10 years||5.25% p.a.||7.00% p.a.|
|Indian Post Office||1 year||5 years||7.10% p.a.||7.90% p.a.|
|HDFC Bank||7 days||10 years||3.50% p.a.||7.25% p.a.|
|ICICI Bank||7 days||10 years||4.00% p.a.||7.50% p.a.|
|Axis Bank||7 days||10 years||3.50% p.a.||7.50% p.a.|
|Punjab National Bank||7 days||10 years||4.25% p.a.||7.50% p.a.|
|Bank of India||7 days||10 years||4.00% p.a.||7.25% p.a.|
|Canara Bank||7 days||10 years||4.00% p.a.||7.50% p.a.|
|Indian Bank||7 days||More than 3 years||5.00% p.a.||7.25% p.a.|
|Bank of Baroda||7 days||10 years||4.50% p.a.||7.30% p.a.|
Note: I took the data from BankBazaar website as they share the latest fixed deposit interest rates 2016.
This is a very demotivating chart for me at least and I know for many people as there are no FD interest rate above 8% which is very less in last many years. Another fact is that generally FDs are taxable and TDS rules also applied on them on maturity. So, the net income or return from a FD scheme will reduce drastically.
How to open a bank Fixed deposit account online?
Opening a bank FD online is very easy these days. I have already shared a detailed article on how to open a FD scheme online in SBI. I hope similar will also applicable for other popular banks like ICICI bank, HDFC bank, Axis bank, PNB etc.
If you are looking for best fixed deposit schemes for tax benefit, then invest in bank FDs with 5 year maturity term to save tax. There is hardly any difference between fixed deposit scheme in post office or bank. As an investor, you have the same choice although the interest rate is less. To get a good return from your money, try to invest your money for long term in mutual funds or PPF account like products.