A quick look at the fixed deposit interest rates!

In a Fixed Deposit Scheme, you need to put in some money as per your convenience or as per the norms of your lenders! The money received fixed, higher interest payouts after its maturity. One can also avail a wider tenor (in the case of investing with an NBFC) ranging between 12 and 60 months and see your money grow!

When it comes to discussing the fixed deposit interest rates, you need to know that an FD scheme offers two types of interest rates – cumulative and non-cumulative!

You can choose one as per your needs and affordability!

A cumulative fixed deposit provides a higher return rate, but they are offered only after the maturity. On the other hand, a non-cumulative fixed deposit has a provision for a monthly, quarterly, half-yearly, and yearly payouts but provide a lower rate of interest.

It’s time to grab the best-fixed deposit interest rates!

In India, fixed deposits are considered a preferred mode of seeing the money grow and earn higher interest. It’s because there is a sense of security along with an FD as it’s unaffected by market fluctuations.

Things to consider ensuring maximum gains on your FD interest rates

If you are willing to make the most of your fixed deposit and gain a good ROI as far as the interest rates are concerned, here are some aspects to consider:

  • The longer the tenor, the higher your rate of interest

Although fixed deposits can be invested for a period of even 7 days, the concept is clear! If you are going to keep your money invested for a longer period, you will receive a larger pie of the interest payouts. NBFCs can offer you around 7.80% interest rate if you invest between 1 and 3 years, and up to 8% or more if investing between 3 and 5 years.


  • Cumulative fixed deposit offers more than non-cumulative ones

As discussed earlier, compared to a non-cumulative FD where the interest payment is made periodically but a lower interest-rate, a cumulative FD offers a higher investment interest rate. If you are not looking for a long-term investment, you can opt for a non-cumulative FD so that you keep getting some payment frequently. If you are game for a long-term investment, go for a cumulative FD and make the most of the higher interest rate.

  • Go for an interest rate customized for you

Some lenders may offer you a special interest rate if you meet some criteria. If you are an existing loan customer with a leading lender, they can offer you a higher rate of interest. This is done considering your extended relationship with the lender and is a part of the customer retention, and beyond! Thus, if you are already a customer of a bank or an NBFC, you are free to go ahead and ask for a special offer for opening an FD.

The Bottom Line

Fixed deposit is definitely a better investment tool than other ones if you have your eyes set on acquiring a better interest rate and a higher yet sure-shot ROI. You just uncovered some vital information on the Fixed Deposit Interest Rate! Opt for an FD scheme and give a good degree of leverage to your money over time!


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