Fixed deposit (FD) is a safe and fixed return investment option among Indians. However, after the Corona crisis in recent times, there is a big reduction in the interest on FDs offered by banks. In such a situation, experts say that if you are planning to invest in FD then it is better not to invest money for more than a year.
This is because interest rates may increase in the next one year. At the same time, if you invest money in FD for a period of five years now, then it means that you will get the benefit at today’s rate. If interest rates rise next year, you will not get the benefit of those increased rates.
Interest rates may increase
Banking experts say that there is no hope of getting relief soon from the rising inflation in the country. In such a situation, it is unlikely that interest rates will fall very much in the next one year, but there is a possibility of interest rates rising in the next two to three years. Therefore it would not make sense to invest for a period of more than one year. Short-term FDs are getting four per cent and for long-term interest rates of 5 to 5.5 per cent.
These banks are getting the highest interest
- IndusInd Bank – 7 percent interest
- Yes Bank – 7 percent interest
- RBL Bank – 6.85 percent interest
- DCB Bank – 6.50 percent interest
- bond bank – 5.74 percent interest
- Standard Chartered Bank – 6.3% interest
Higher interest on corporate FD
If you want to get more interest on FD then you can invest in corporate FD. Corporate FD is very similar to bank FD, but the risk is slightly higher in case of corporate FD as compared to bank FD. However, strong and highly rated companies have lower FD risk. It works in exactly the same way as a bank FD. For this, the company issues the form, which can also be filled online.
