Question: Is FD A Good Investment Option?

How can I get maximum return from fixed deposit?

Try and apply for cumulative deposits, as they tend to compound interest.

Banks compound interest every quarter, while company Fds do not.

The law of compounding will ensure higher yields in the future.

Some companies like KTDFC compound interest every month, so your yields tend to be very high..

What is the maximum period of fixed deposit?

10 yearsTenure of FD Usually, one can invest in FD for minimum period of 7 days and for a maximum of 10 years. You can choose the period for which you wish to keep your FD as per your requirement.

What is lic interest rate?

Interest Rate Range: 5.90% p.a. to 6.00% p.a. Senior Citizens FD Rate: 6.15% to 6.25% p.a. Highest Interest Rate: As per today’s rate, LIC Housing Finance’s highest interest rate on FD is 6.00% offered for a tenure of 5 years.

Is LIC better than FD?

Fixed deposit is always a better option to invest as it is purely designed for your investment and savings related needs. … Fixed deposits offer fixed returns on investments and it is mentioned in the beginning when you open your deposit. But, investment in Unit Linked Life Insurance Plans is subject to market risk.

Which investment gives highest return?

Here is a look at the top 10 investment avenues Indians look at while saving for their financial goals.Equity mutual funds. … Debt mutual funds. … National Pension System (NPS) … Public Provident Fund (PPF) … Bank fixed deposit (FD) … Senior Citizens’ Saving Scheme (SCSS) … Real Estate. … Gold.More items…•

Which bank is highest interest?

Fixed Deposit Interest Rates of Top 10 Banks in India for below Rs. 2 croreName of BankFor General Citizens (p.a)For Senior Citizens (p.a)Axis Bank2.50% to 5.50%2.50% to 6.60%Bank of Baroda2.90% to 5.30%3.40% to 6.30%IDFC Bank3.00% to 7.00%4.00% to 7.50%Bank of India3.25% to 5.25%3.75% to 5.75%6 more rows

What is the safest investment with the highest return?

Here are 10 safe investments with high returns:Certificates of Deposit. … Online Checking and Savings Accounts. … Money Market Funds. … Treasury Inflation-Protected Securities. … US Savings Bonds. … Peer-to-Peer Lending. … Real Estate Investment Trusts. … Annuities.More items…•

Is insurance better than FD?

If you wish to save and also invest for future, it is always advised to invest in FDs. On the other hand, life insurance plans are meant to offer risk protection as well as protect the financial interests of your family in your absence. Thinking of short and long term investments, FDs are better.

Which is better gold or FD?

Gold investments may offer you a reasonable rate of return. … Hence, the returns become nominal in the case of gold investment. Fixed deposit, on the other hand, continue to provide fixed returns that are locked-in for the investment term. The returns are guaranteed, irrespective of the amount that you deposit.

Is FD a good investment?

Fixed Deposits As one of the most traditional and safest means to invest, many prefer it for wealth creation and saving taxes. Yes, it is eligible for tax deduction under 80C. They also offer high-interest rates as compared to savings accounts. You can open an FD account with almost all the banks in India.

Which bank is safe for fixed deposit?

To get the benefit of high rates, both SBI Bank and ICICI bank have a new FD scheme exclusively for senior citizens. The bank fixed deposits are becoming the first choice of depositors to keep their savings safe.

How can I double my money in 5 years?

How the Rule Works. To use the Rule of 72, divide the number 72 by an investment’s expected annual return. The result is the number of years it will take, roughly, to double your money.

Which bank has highest FD rate?

Best Fixed Deposit Rates By Tenor1-Month: 0.25% p.a. (ICBC)3-Month: 0.30% p.a. (HSBC)6-Month: 0.50% p.a. (Standard Chartered)8-Month: NA.9-Month: 0.65% p.a. (ICBC)10-Month: 0.65% p.a. (UOB)12-Month: 0.85% p.a. (Hong Leong Finance)13-Month: 0.90% p.a. (Hong Leong Finance)More items…

Which type of FD is best in SBI?

SBI Fixed Deposits for Senior Citizens FD is a perfect option for retirees or those who are on pensions as it works as an additional source of income. SBI FD interest rates range from 3.40% to 6.20% per annum for deposits less than Rs 2 Crore.

Which bank is best for fixed deposit in 2020?

DBS. BEST FOR. Low minimum deposit. INTEREST RATES. … Maybank. BEST FOR. Promotions for online deposits. INTEREST RATES. … ICBC. BEST FOR. Short tenure. INTEREST RATES. … Hong Leong. BEST FOR. Considerate and fair conditions. INTEREST RATES. … CIMB. BEST FOR. Same interest rates for 3 months up to 1 year. INTEREST RATES.

Which type of FD is best?

List of 10 best FD schemes for 3 yearsShriram City. … Mahindra Finance. … Sundaram Finance. … LVB. … ICICI Home Finance. … Yes Bank. … ICICI Bank. The annual percentage rate paid by ICICI Bank on FDs opened for a period of 3 years is 6.00% p.a. … HDFC Bank. The rate of interest paid on HDFC Bank FDs for a 3-year tenure is 6.00% p.a.More items…

How many years FD will double in LIC?

5 YearsLIC Plan 5 Years Double Money.

Is FD in LIC Housing Finance safe?

LIC Housing Finance is backed by LIC and hence the deposits are safe. The interest rate offered on the deposits are 7.50 per cent for a period of 1 year and also 7.5 per cent on a 18-month deposit. If you are looking to a 3 and 5 year deposit, the interest rate of 7.6 per cent, which is not bad at all.

Which investment is better than fixed deposit?

Popular investments under this scheme include PPF, Post office time deposit, Senior citizen savings scheme, and Monthly income scheme among others. PPF, a long-term investment option offers guaranteed returns and offers a return of 7.90 per cent, and also falls under the EEE category (exempt, exempt and exempt).

Can you lose money in fixed deposit?

Interest rate risk When you put money in an FD, the rate of interest is guaranteed. However, there is no guarantee that the rate of interest will be the same the next time you want to put money in FD. … You effectively end up losing money in your old FD because you lost that higher-returning opportunity.