Home Investments Fixed Deposit How to Compare and Select Fixed Deposit Plan?

How to Compare and Select Fixed Deposit Plan?

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Fixed Deposit Plan

Why Fixed Deposit Plan?

Fixed deposits are a good way to save money and keep it secure, if you have a large sum of money as investment. A fixed deposit in a bank will earn you higher interest rate and once matured will give you a good amount. Fixed deposits are not only offered by banks but also by companies and corporate called Non-Banking Finance Companies. While there are umpteen numbers of banks, offering fixed deposits choosing the best one is vital.

How to select a good fixed deposit plan?

  • Select fixed deposit plans which are not dependent on ratings.
  • While making a fixed deposit choosing private sector banks or PSU banks ensure safe returns.
  • If you are planning to make an investment with fixed deposit, always consider the maturity amount, interest rate, interest rate after tax as well as returns
  • Before making an investment on fixed deposit in the bank, always compare other banks and the rate at which they offer the interest. The rate of interest and tenure differ with different banks.
  • It is always a good idea to thoroughly go through the premature withdrawal terms and conditions before making a deposit; it varies for different banks. Always study it before you withdraw as some banks impose a penalty charge on premature withdrawal of fixed deposit while others do not.
  • Always have an idea about the tenure or time period you are going to deposit the money; short or long depending on how soon you want the money.
  • Different banks offer different fixed deposit schemes, so always make a comparison and then make a decision on which bank to go with.

How to make a comparison of fixed deposits in banks?

While the underlying facts and process on fixed deposit remain the same, banks may offer different schemes for senior citizens and savings account wherein the rate of interest, minimum balance, annual yield and tenure may be different.

  • While some banks offers a minimum balance of 10,000 INR some stick to 5,000 INR.
  • The rate of interest may start with 7.50% for some extending to 8%, 8.50%,8.90%,9% and even 9.10%.
  • The duration also differs for different banks, some are 1100 days while others 400 days, 900 days, 4 to 5 years, 24 to 36 months, 21 months 10 days, 3 to 5 years etc.

Hence depending on the deposit you are about to make, choose the bank and all other parameters in it wisely. Fixed deposits are always a good way to earn money but always analyse and have a close look at various schemes offered by different banks and choose the one that is most likely to give you more benefits and returns.

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7 COMMENTS

  1. FD’s are a good way to earn a handsome money when it gets mature. The interest rates differ from bank to bank, but many times it is also seen that many banks offering good interest in low amount of money also. Thus as pointed out in article one should check various banks offering of interest rates on FD’S and then only going for the best option among them. I would prefer to go for govt. banks only as its more safe than private.

  2. A great article that will help you to carefully compare and select the best FD plan fr yourself. One should always check the bank’s background before investing in fixed deposits. Apart from the fixed deposit schemes offered by banks, one should also consider the schemes offered by post office. The interest rate offered by post office is usually higher as compared to that offered by banks.

  3. This is an amazing article which will give you vital information regarding the vest Fixed Deposit plan for you and the ideal option for your investment. Fixed deposits are a proven method to safely keep your savings and also get a good return after the maturity period. However before going for any of the Fixed Deposit plans, you should put a proper check on the pros and cons, compare different banks and financial institutions and then proceed.

  4. This is definitely a very helpful article for people like me who mostly like to invest in Fixed Deposits. I am sure the tips given in the article to choose the right FD and the right bank to invest in will definitely help me in investing in a better Fixed deposit in the future. Also, I have a notion that investing in private banks is a bit risky. Please enlighten me on this

  5. According to this,fixed deposits are a good way to save money and keep it secure, if you have a large sum of money as investment. A fixed deposit in a bank will earn you higher interest rate and once matured will give you a good amount.This article describes various points one should keep in mind while selecting a good deposit plan. It also helps one to compare between FDs of various banks.

  6. The more I read on this website, the more I think fixed term deposits are a smart choice.
    Now with the ability to compare them, I can make the right choice for my money. Thanks for the information, once again 🙂
    The more I read, the better handle I get on fixed deposit loans and how to really make it work for me and my money.

  7. Investing money in a fixed deposit plan is a safe and profitable investment. But investment must be made carefully and different parameters must be considered before investing, these are: maturity amount, interest rate, interest rate after tax, schemes and time of deposits, security, premature withdrawal’s terms and conditions, etc. Secondly a comparison between different banks must be made on the basis of minimum amount of investment, the rate of interest and tenure of the plans.

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