FD interest rates have become quite successful, with financial institutions coming up with competitive and lucrative options. Lately, fixed deposits are becoming one of the preferred investment options for those who want their money to grow safely and steadily while still getting a good return on their investment. This article will discuss selecting fixed deposit schemes with high FD interest rates.
How to Select the Fixed Deposit Rates with Highest FD Rates
- Select a financial institution with the best offers
There are a lot of offers going on these days where you can avail of staggering highest FD interest rates from financial institutions. Look out for those deals before you finalise on a financial institution. In the current time when the economy is falling and the interest rates on FD are seeing a decline, opt for a lender that offers at least a 6% p.a. rate of interest. Going below this rate will not help you appreciate your money, as the inflation rate will eat up any gains you will make on your money.
- Cross-Check the Credibility of the financial institution
Don’t just look for the highest FD interest rates but also look out for the Credibility of the financial institutions. There are agencies that give ratings to financial institutions. Do check these ratings online to ensure that your money is going into safe hands. The rating agencies like ICRA or CRISIL provide this rating. Bajaj Finance Fixed Deposit has a CRISIL’s FAAA rating and ICRA’s MAAA rating which makes it a safe investing option.
- Go for private-sector financial institutions
Due to their inherent competitive style of doing business, private financial institutions offer very lucrative interest rates on their fixed deposit schemes. Check these out before you put your hard-earned money into any other fixed deposit. Check the tenor for fixed deposits that these financial institutions allow for and look for the best FD interest rates. These institutions have also provided some added benefits and fixed deposit schemes. Do consult a financial advisor before investing in these schemes.
- Select Between a Non-Cumulative and Cumulative FD
Depending on your choice of interest on maturity or periodic returns, you can choose an FD type between non-cumulative and cumulative FDs. In a non-cumulative fixed deposits, you can get monthly, yearly, quarterly, or semi-quarterly earnings. Whereas with cumulative FDs, you get the lump sum final amount at maturity. Usually, cumulative fixed deposits offer higher pay-outs, so you can select them if you do not want to get periodic pay-outs.
- Use an FD calculator
Using an FD interest calculator is also an excellent way of finding the best-fixed deposit schemes for you. You can put the amount of money you want to invest, the tenor of investment, and the rate of interest offered by the financial institution. The user interface of the FD interest rates calculator will give you a comparative analysis of different schemes from which you can choose one. These calculators are available for free online and can prove to help find the best-fixed deposit scheme with the highest FD interest rates.
The Bottom Line!
You can make maximum profit from your investment by selecting a suitable FD scheme. By considering the factors mentioned above, you can make the right decision. These pointers will help you choose the best-fixed deposit scheme for you. As discussed above, high-interest rates should not be the only factor you should be looking for. The Credibility of the financial institution and the tenor of investment are some of the other points that you must take into consideration while making the decision. Your investment plan should align with your investment goals to meet them as per your need. It is the only way you can see your money grow steadily and have a reasonable rate of return.