Fixed Deposits of Top 12 banks offering highest interest rates – Compare rates now

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Fixed deposits (FDs) are an ideal choice for individuals who prefer low-risk investments. They ensure a fixed interest rate on the initial amount over the entire duration, compounded periodically. An advantageous aspect of FDs is the ability to select varying tenures, allowing for efficient management of multiple FDs with different maturity dates.

To initiate an FD, you may opt for a bank where you hold a savings account or explore other banks offering higher interest rates. The decision is entirely yours, although the process may vary if you choose a bank with no existing relationship, requiring additional KYC and documentation procedures.

FDs provide a secure way to protect a fixed sum of money and ensure a steady stream of income. By depositing a lump sum amount into an FD account, you can avoid market fluctuations and receive a fixed rate of interest for the agreed-upon period.

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Opening an FD account is now more convenient than ever, as you can do so online or by visiting a nearby bank branch. If you already have a savings account with the same bank, you can skip the KYC process and easily transfer funds between accounts.

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Additionally, senior citizens can benefit from an extra 50 basis points interest on bank FDs, making it a wise choice to open FDs in their names for higher returns. FDs are ideal for immediate financial needs or emergencies, allowing you to access your funds quickly. While it is possible to take a loan against your FD, it is important to carefully review the terms and conditions beforehand.

You are given the choice to decide on the FD amount to be transferred to your savings account or to renew it after maturity. Opting for the latter will mean that the amount will be reinvested as a fixed deposit. Remember that breaking your FD before maturity will lead to a lower interest rate and a penalty deduction from the FD amount. It is crucial to carefully consider all the pros and cons, and compare interest rates from different banks for FDs before making a final decision.

The following list comprises the leading 12 banks that provide elevated interest rates on fixed deposits. You have the option to evaluate the interest rates and durations ranging from 1 to 5 years, and select the one that best suits your preferences.