People have different ways to saving money. Some prefer fixed deposit (FD) accounts because they provide stability and predictability. FDs offer a fixed interest rate that remains constant unlike risky stock market investments. If you prefer a secure way to grow your savings without market fluctuations then you must read the below article on the highest FD interest rates 2024 in India
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Table of Contents
What is a Fixed Deposit (FD) Account?
Fixed Deposit accounts are a safe investment choice where you place money for a predetermined period. You will earn a guaranteed interest rate which often higher than normal savings accounts. At the end of the term, you can withdraw your initial investment (principal) and any interest earned or you can reinvest it. When considering non bank FD options, you need to check their financial stability ratings. Some private banks may provide more attractive interest rates than traditional bank.
Type of Fixed Deposit Account
Regular FD: It is for people under 60 years old, with standard interest rates over a fixed period.
Senior Citizens FD: It is Ideal for those aged 60 and above which offers higher interest rates and the option to receive interest every month.
Tax-Saving FD: A wise option for investors who need to reduce taxes. It has a minimum lock-in period of 5 years and allow you claim tax deductions under section 80C of the Income Tax Act.
Corporate FD: It is perfect for businesses to deposit extra funds for a while with flexible interest rates and deposit terms.
FCNR FD: NRIs can deposit their foreign earnings in these accounts in currencies like US Dollars, British Pounds, Euros, and Japanese Yen. These accounts keep the funds in the same currency which provide competitive returns while protecting against currency fluctuations.
NRE FD: These accounts allow NRIs to convert their foreign earnings into Indian currency. Both the amount invested and the interest earned can be withdrawn from India. Additionally the interest earned is tax-free under Section 10(4) of the Income Tax Act.
Maturity Payout FD: Over time, interest builds up on the deposit, eventually combining with the principal. Both the original investment and the earned interest are paid out as a lump sum upon maturity. This approach has the potential to generate substantial earnings over the long term.
Monthly Payout FD: This account offers regular monthly interest payments which provide a consistent source of income. The interest is not added to the principal and you can withdraw it as needed for your expenses.
Benefits of Fixed Deposit
Here is the list of benefits that why Fixed Deposit (FD) accounts are better:
- Flexible Duration: you can deposit your funds for terms ranging from a week to 10 years, according to your needs. Banks offer varying flexibility.
- Senior Citizen: If you are 60 years and above, you can enjoy an extra 0.5% interest rate advantage.
- Instant Access to Funds: You can withdraw part or all of your funds early, although penalties may apply in such case.
- Tax-Saving Option: It reduce your tax burden by investing in FD schemes eligible for tax deductions under Section 80C of the Income Tax Act.
- Reinvestment: When your FD matures, you can reinvest the sum again which keep the growth going.
- Emergency Loan: You can also take out a loan against your FD in case of emergency.
- Long-Term Gains: The longer you invest, the more you get benefits.
- Predictable Income: FD returns are predictable and unaffected by market fluctuations.
- Safe as Houses: FD is secure because banks and financial institutions are regulated by the Reserve Bank of India (RBI).
- Compounding Benefit: Interest is added to your principal which grow investment rapidly.
- Premature Withdrawal: With the option for premature withdrawals, you get a safety when unexpected situations arise
Scheduled Banks offering Highest FD Interest Rates 2024
1. Suryoday Small Finance Bank
This bank provides FD rates ranging from 4.00% to 9.01% per year for general customers and 4.50% to 9.25% per year for senior citizens customers. They offer flexible FD terms from short-term (7 days) to long-term (10 years). Additionally, for customers seeking tax benefits, special FD rates are available: 8.25% per year for general customers and 8.75% per year for senior citizens. Here is the list of FD rates offered by this bank:
- Highest slab rate: 9.01% (for above 2 years & 1 month)
- For 1 year: 6.85% p.a.
- For 2 years: 8.50% p.a.
- For 3 years: 8.60% p.a.
- For 4 years: 6.75% p.a.
- For 5 years: 8.25% p.a.
- Tax-Saving FD: 8.25% p.a.
2. Unity Small Finance Bank
This bank provides FD rates ranging from 4.50% to 9.00% per year for general customers and 4.50% to 9.50% per year for senior citizens customers. They offer flexible FD terms from short-term (7 days) to long-term (10 years). Here is the list of FD rates offered by this bank:
- Highest slab rate: 9.00% (for 1001 days)
- For 1 year: 7.85% p.a.
- For 2 years: 7.90% p.a.
- For 3 years: 8.15% p.a.
- For 4 years: 8.15% p.a.
- For 5 years: 8.15% p.a.
3. Shivalik Small Finance Bank
This bank provides FD rates ranging from 4.00% to 9.01% per year for general customers and 4.25% to 9.20% per year for senior citizens customers. They offer flexible FD terms from short-term (7 days) to long-term (10 years). Additionally, for customers seeking tax benefits, special FD rates are available: 6.50% per year for general customers and 7.00% per year for senior citizens. Here is the list of FD rates offered by this bank
- Highest slab rate: 8.70% (for 1 year to 18 months)
- For 1 year: 8.70% p.a.
- For 2 years: 7.80% p.a.
- For 3 years: 7.50% p.a.
- For 4 years: 6.50% p.a.
- For 5 years: 6.50% p.a.
- Tax-Saving FD: 6.50% p.a.
4. Fincare Small Finance Bank
This bank provides FD rates ranging from 3.00% to 8.61% per year for general customers and 3.60% to 9.21% per year for senior citizens customers. They offer flexible FD terms from short-term (7 days) to long-term (84 months). Additionally, for customers seeking tax benefits, special FD rates are available: 8.00% per year for general customers and 8.60% per year for senior citizens. Here is the list of FD rates offered by this bank
- Highest slab rate: 61% (for 750 days)
- For 1 year: 65% p.a.
- For 2 years:11% p.a.
- For 3 years:11% p.a.
- For 4 years:50% p.a.
- For 5 years: 00% p.a.
- Tax-Saving FD:00% p.a.
5. Equitas Small Finance Bank
This bank provides FD rates ranging from 3.50% to 8.50% per year for general customers and 4.00% to 9.00% per year for senior citizens customers. They offer flexible FD terms from short-term (7 days) to long-term (10 years). Additionally, you can open an FD account without a savings account and get an interest rate of 8.20% p.a. for 1 year. Here is the list of FD rates offered by this bank
- Highest slab rate:50% (for 444 days)
- For 1 year: 20% p.a.
- For 2 years:75% p.a.
- For 3 years:00% p.a.
- For 4 years:50% p.a.
- For 5 years:25% p.a.
6. Jana Small Finance Bank
This bank provides FD rates ranging from 3.50% to 9.00% per year for general customers. They offer flexible FD terms from short-term (7 days) to long-term (10 years). Additionally, for customers seeking tax benefits, special FD rates are available: 7.25% per year for general customers and 7.75% per year for senior citizens. Here is the list of FD rates offered by this bank
- Highest slab rate:50% (for 365 days)
- For 1 year: 50% p.a.
- For 2 years:25% p.a.
- For 3 years:25% p.a.
- For 4 years:25% p.a.
- For 5 years:25% p.a.
- Tax-Saving FD:25% p.a.
7. ESAF Small Finance Bank
This bank provides FD rates ranging from 4.00% to 8.25% per year for general customers and 4.50% to 8.75% per year for senior citizens customers. They offer flexible FD terms from short-term (7 days) to long-term (10 years). Here is the list of FD rates offered by this bank.
- Highest slab rate:25% (for 2 years to less than 3 years)
- For 1 year:00% p.a.
- For 2 years:25% p.a.
- For 3 years:75% p.a.
- For 4 years:75% p.a.
- For 5 years:25% p.a.
8. SBM Bank
This bank provides FD rates ranging from 4.25% to 8.25% per year for general customers and 4.75% to 8.25% per year for senior citizens customers. They offer flexible FD terms from short-term (7 days) to long-term (10 years). Additionally, for customers seeking tax benefits, special FD rates are available: 7.75% per year for general customers and 8.75% per year for senior citizens. Here is the list of FD rates offered by this bank
- Highest slab rate:25% (for 3 years 2 days)
- For 1 year:00% p.a.
- For 2 years:30% p.a.
- For 3 years:00% p.a.
- For 4 years:00% p.a.
- For 5 years:75% p.a.
- Tax-Saving FD:75% p.a.
9. Utkarsh Small Finance Bank
This bank provides FD rates ranging from 4.00% to 8.50% per year for general customers and 4.75% to 9.10% per year for senior citizens customers. They offer flexible FD terms from short-term (7 days) to long-term (10 years). Additionally, for customers seeking tax benefits, special FD rates are available: 7.50% per year for general customers and 8.25% per year for senior citizens. Here is the list of FD rates offered by this bank
- Highest slab rate: 50% (for 2 years to 3 years)
- For 1 year: 00% p.a.
- For 2 years:50% p.a.
- For 3 years:50% p.a.
- For 4 years:50% p.a.
- For 5 years:50% p.a.
- Tax-Saving FD:50% p.a.
10. Ujjivan Small Finance Bank
This bank provides FD rates ranging from 3.75% to 8.50% per year for general customers and 4.25% to 9.00% per year for senior citizens customers. They offer flexible FD terms from short-term (7 days) to long-term (10 years). Additionally, for customers seeking tax benefits, special FD rates are available: 7.20% per year for general customers and 7.70% per year for senior citizens. Here is the list of FD rates offered by this bank.
- Highest slab rate:50% (for 15 months)
- For 1 year: 25% p.a.
- For 2 years: 50% p.a.
- For 3 years: 20% p.a.
- For 4 years: 20% p.a.
- For 5 years: 20% p.a.
- Tax-Saving FD: 20% p.a.
Conclusion
Finding the Highest FD Interest Rates 2024 is key to maximizing your savings. With a range of banks offering competitive rates for both the general public and senior citizens, it is important to keep an eye on the latest rates. Whether you are looking for short or long term investments, there is an FD option out there to suit your needs. So, stay informed and make the most of your savings with the Highest FD Interest Rates 2024.
Frequently Asked Questions (FAQ)
Recently, Suryoday Small Finance Bank is offering highest FD interest rates 2024 which is 9.01%.