Gain higher interest rates on short-term fixed deposit

Fixed deposit is a secured mode of saving and growing your funds. There are various fixed deposit terms 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
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Below is the list of banks offering higher rate of interest on FD for one year on Rs. 10,000.

Bank NameRate of InterestDurationMaturity Amount
Bharat Bank8.5% (Quarterly compounding)1 yearRs. 10,877
Mahindra Finance8.45% (Quarterly compounding)1 yearRs. 10,845
Bandhan Bank8.25% (Quarterly compounding)1 yearRs. 10,851
ICICI Home Finance8.15% (Yearly compounding)1 yearRs. 10,815
Sundaram Finance8.0% (Quarterly compounding)1 yearRs. 10,824
Nainital Bank 7.9% (Quarterly compounding)1 yearRs. 10.814
Lakshami Vilas Bank7.8% (Monthly compounding)1 yearRs. 10,808
IDBI Bank7.75% (Monthly compounding)1 yearRs. 10,803
Karnataka Bank7.75% (Monthly compounding)1 yearRs. 10,803
Bank of Baroda7.75% (Quarterly compounding)1 yearRs. 10,798
Induslnd Bank7.75% (Quarterly compounding)1 yearRs. 10,798
J&K Bank7.75% (Quarterly compounding)1 yearRs. 10,798
Karur Vysya Bank7.75% (Quarterly compounding)1 yearRs. 10,798
Bank of Maharashtra 7.6% (Quarterly compounding)1 yearRs. 10,782
Standard Chartered7.6% (Quarterly compounding)1 yearRs. 10,782
State Bank of Mysore7.6% (Quarterly compounding)1 yearRs. 10,782
Union Bank of India7.6% (Half-yearly compounding)1 yearRs. 10,780
State Bank of Patiala7.57% (Quarterly compounding)1 yearRs. 10,779
Punjab & Sind Bank7.55% (Quarterly compounding)1 yearRs. 10,777
South Indian Bank7.55% (Quarterly compounding)Rs. 10,777

(Updated on:1 November,2016)

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