Fixed deposits are always an attractive option in a rising interest rate scenario, for the simple reason that they allow you to lock in your interest earnings at higher rates, shielding them from a decline for a fixed term.
Fixed deposits have again become an attractive saving and investment option for a majority of risk-averse investors as well as senior citizens ever since their interest rates started rising again this year. And the FD rates are bound to further go up in this rising interest rate regime, which is good news for investors looking to invest in FDs.
According to banking and financial experts, fixed deposits are always an attractive option in a rising interest rate scenario, for the simple reason that they allow you to lock in your interest earnings at higher rates, shielding them from a decline for a fixed term.
Given the upward RBI repo rate revisions and rise in small saving rates starting this year, several banks have already announced an increase in FD rates and many more are expected to follow suit. At the same time, many new small banks have been vying for a large share of retail deposits and hence, are offering highly-attractive FD rates.
For instance, “IDFC Bank is offering interest rate of 8.25% for FDs of more than 3-year tenure to up to 10 years which makes it comparable to many other small saving schemes. Investing in these FDs can be a good pick for investors who are looking at diversifying their investment portfolio and balancing it with relatively longer-term risk-free instruments at high rates. Further, the banks offer special FD rates for senior citizens, which makes them a good choice for them. The key to make the right choice is to compare FD rates bank-wise and tenure-wise and choose the one with the highest rate,” says Gaurav Gupta, Co-founder and CEO, MyLoanCare.in.
If you are looking to put your money in fixed deposits, you should compare the interest rates offered by different banks and NBFCs. Here are the latest FD rates of SBI, HDFC, ICICI, Kotak, other banks and NBFCs:
Note- Data taken from respective bank’s website as on 10 Oct 2018
*Max loan tenure considered up to 5 years