Gain higher interest rates on short-term fixed deposit
Last Updated : March 17, 2017, 12:51 p.m.
Fixed deposit is a secured mode of saving and growing your funds. There are various fixed deposit term s available to choose from. You can select a short-term fixed deposit or long-term fixed deposit. The duration of the fixed deposit varies from 7 days to 20 years maximum. However, most of the people opt for five years fixed deposit to save income tax along with gaining higher interest rates. But, choosing the short term fixed deposit is also good option.
These short-term fixed deposits also give higher rate of interest and flexibility as well. These short-term fixed deposits are available for minimum seven days. You can choose a tenure from one month, two months, to 1 year or more than a year depending upon your financial goals and needs. Fixed deposits interest rates are higher than any other saving plan that's why it offers you assured returns. It also gives you along flexibility to get the money if you need it before the completion of the tenure. You can break the fixed deposit any time during the tenure whenever you are in urgent need of money. In most of the cases the money is credited in you bank account within 24 working hours. There are other benefits of fixed deposit. Here are some benefits of short-term fixed deposits:
Benefits of Short-term fixed deposits:
- Higher interest rates as compared to other savings
- Fixed deposits can be easily encash at the time of urgency
- Fixed deposits is good option of saving for those who falls under the 10% tax bracket
- Auto renewal facility available
- Safe option to save money and gaining higher interest
- Flexible duration to choose from 1 month to 1 year
Below is the list of banks offering higher rate of interest on FD for one year on Rs. 10,000.
| Bank Name | Rate of Interest | Duration | Maturity Amount |
|---|---|---|---|
| Bharat Bank | 8.5% (Quarterly compounding) | 1 year | Rs. 10,877 |
| Mahindra Finance | 8.45% (Quarterly compounding) | 1 year | Rs. 10,845 |
| Bandhan Bank | 8.25% (Quarterly compounding) | 1 year | Rs. 10,851 |
| ICICI Home Finance | 8.15% (Yearly compounding) | 1 year | Rs. 10,815 |
| Sundaram Finance | 8.0% (Quarterly compounding) | 1 year | Rs. 10,824 |
| Nainital Bank | 7.9% (Quarterly compounding) | 1 year | Rs. 10.814 |
| Lakshami Vilas Bank | 7.8% (Monthly compounding) | 1 year | Rs. 10,808 |
| IDBI Bank | 7.75% (Monthly compounding) | 1 year | Rs. 10,803 |
| Karnataka Bank | 7.75% (Monthly compounding) | 1 year | Rs. 10,803 |
| Bank of Baroda | 7.75% (Quarterly compounding) | 1 year | Rs. 10,798 |
| Induslnd Bank | 7.75% (Quarterly compounding) | 1 year | Rs. 10,798 |
| J&K Bank | 7.75% (Quarterly compounding) | 1 year | Rs. 10,798 |
| Karur Vysya Bank | 7.75% (Quarterly compounding) | 1 year | Rs. 10,798 |
| Bank of Maharashtra | 7.6% (Quarterly compounding) | 1 year | Rs. 10,782 |
| Standard Chartered | 7.6% (Quarterly compounding) | 1 year | Rs. 10,782 |
| State Bank of Mysore | 7.6% (Quarterly compounding) | 1 year | Rs. 10,782 |
| Union Bank of India | 7.6% (Half-yearly compounding) | 1 year | Rs. 10,780 |
| State Bank of Patiala | 7.57% (Quarterly compounding) | 1 year | Rs. 10,779 |
| Punjab & Sind Bank | 7.55% (Quarterly compounding) | 1 year | Rs. 10,777 |
| South Indian Bank | 7.55% (Quarterly compounding) | Rs. 10,777 |
(Updated on:1 November,2016)
