Fixed Deposit: Fixed deposits remain the preferred savings instrument for many Indians. It is considered a safe investment option. Let us know how much return these 10 big banks are giving in three years on an investment of Rs 1 lakh.
Fixed Deposit: When it comes to your hard-earned money, you would want to invest your money in multiple financial instruments that not only protect your capital but also provide assured returns. Fixed deposits remain the preferred savings instrument for many Indians. Mainly because they offer guaranteed returns that do not depend on market volatility. It is a handy tool that allows you to diversify your portfolio while providing modest returns.
Fixed deposit is a safe option for investment
Fixed deposits are considered a safe investment option as the principal amount is safe and the returns are predetermined. This makes it a low-risk investment compared to other financial instruments. FDs provide some degree of certainty about returns. Thus attracting conservative investors who prioritize stability over the potentially high returns that are often associated with risky investments.
Another factor increasing the popularity of FDs is that they are easy to understand and easy to operate. Investors deposit a lump sum for a fixed period and receive interest at a predetermined rate on the principal amount. The simplicity of this investment makes it accessible to a wide range of individuals, including those with limited financial knowledge.
Investing in fixed deposits is not as risky as the stock market.
Whereas FD has a fixed tenure. Banks and financial institutions often provide some degree of liquidity through premature withdrawal options. Although this may involve reduction in penalties and interest rates, there should be flexibility to access money in case of emergencies.
An important feature especially for older investors. Fixed deposits provide a stable and predictable source of returns in times of economic uncertainty or market volatility. This stability is attracting risk-averse investors who want to protect their funds from market fluctuations.
Banks, post offices, other financial institutions can open fixed deposit accounts.
You can open a fixed deposit account in any bank, post office and other financial institutions across India. Banks often offer additional interest rates to senior citizens. That makes fixed deposits an attractive option for retirees or those looking for a stable income source during their post-employment years.
| names of banks | FD interest rate | Tenure | How much money will you get on investment of one lakh rupees |
| Bank Op Baroda | 7.25 | 3 year | Rs 1,24,055 |
| Axis Bank | 7.10 | 3 year | Rs 1,23,508 |
| HDFC Bank | 7.00 | 3 year | Rs 1,23,144 |
| Punjab National Bank | 7.00 | 3 year | Rs 1,23,144 |
| ICICI Bank | 7.00 | 3 year | Rs 1,23,144 |
| Canara Bank | 6.80 | 3 year | Rs 1,22,420 |
| SB I | 6.75 | 3 year | Rs 1,22,239 |
| Union Bank | 6.50 | 3 year | Rs 1,21,341 |
| Bank of India | 6.50 | 3 year | Rs 1,21,341 |
| Indian Bank | 6.25 | 3 | 1,20,448 |
Above are the interest rates of 10 big banks on fixed deposits. If you invest Rs 1 lakh here for three years, you will get this much money as per the data given above. Data compiled by BankBazaar.com on February 5, 2024.
