Best Fixed Deposits Interest with a 2-year Tenure
Anup is a bright college-going student. He participated in a National Science Olympiad and stood meritoriously. He got a lump-sum amount of fifty thousand rupees as a cash prize. He is still a college-going student with no financial liabilities, and he was bewildered about what to do with such a massive amount of money. His uncle advised him to start a fixed deposit and told him to go for the best fd interest rates. Anup has no idea what his uncle is talking about, but he is willing to know.
Do you, too, have some free cash to invest? You can support them into fixed deposits, especially in schemes offering 2 year fd interest rates. Keep reading this blog to know everything about fixed deposits and find out the highest fd interest rates.
What is a Fixed Deposit?
A fixed deposit is a financial instrument offered by banks and non-banking financial companies (NBFCs) in which you deposit a lump-sum amount over a fixed tenor and at a fixed interest rate. This financial instrument provides utmost safety to your deposited money. Before depositing, it is suggested to check the fd interest rates all banks offer.
After the lock-in period is over, there are guaranteed returns on the maturity of the fixed deposit. These interest rates remain unchanged and uninfluenced even if there are market fluctuations. But, you can’t withdraw your money before maturity even if you have invested in a scheme that provides the best fd interest rates or highest fd rates.
Features and benefits of fixed deposit
- Assured returns even in market fluctuations
- Little to no risk of losing the principal
- The highest fd interest rates are offered by NBFCs
- Can be renewed, renewing your fixed deposit can help you get additional rate benefits.
- As per the Income Tax Act of 1961, tax is deducted at the source of the interest income.
- There is also an option for periodic interest payouts that can help you manage your daily expenses.
- This is beneficial for senior citizens as they get the highest fd rates.
Best FD schemes for two years
Following is the list of the best schemes for 2 year fd interest rates. Let’s look at the fd interest rates all banks provide.
Utkarsh small finance bank
This small finance bank presently offers the highest fd interest rates for 2-year tenure fixed deposit plans. For the general public, the interest rate is 6.75% per annum, and for senior citizens, the interest rate is 7.25% per annum.
Fincare small finance bank
This small finance bank offers the second-highest fd interest rates for 2-year fixed deposit tenure. For the general public, the interest rate is 6.25% per annum, and for senior citizens, the interest rate is 6.75% per annum. They even offer premature withdrawal, nomination, and loans on fixed deposits. There is also an option of a joint account under the Fincare Small Finance Bank.
Suryoday small finance bank
For the general public, the interest rate is 6.75% per annum, and for senior citizens, the interest rate is 7.25% per annum. They offer various time deposit options and different interest payout options available. A penalty charge of 1% is made if a withdrawal is made prematurely. This bank provides a minimum of 7 days and a maximum of 10 years tenure for fixed deposits making these rates the best fd interest rates.
This is an NBFC known for its highest fd rates. For the general public, the rate of interest is 6.00% per annum, and for senior citizens, the interest rate is 6.25% per annum. The minimum principal for depositing is Rs. 10,000. This bank offers a minimum of 1 year and a maximum of 5 years tenure for fixed deposits.
ESAF small finance bank
This NBFC offers many benefits like loans and overdrafts. For the general public, the interest rate is 6.25% per annum, and for senior citizens, the interest rate is 6.50% per annum. On a value of less than Rs. 2 crores, the interest rates are applicable for all time deposits.
LIC housing finance Ltd
LIC is an NBFC famous for its security, excellent rate of returns, and some other benefits to its customers. For the general public, the interest rate is 5.50% per annum, and for senior citizens, the interest rate is 5.75% per annum. There is also a nomination facility. For all time deposits, the frequency of compounding is annual.
The last bank on our list is the IDCF bank. For the general public, the rate of interest is 5.10% per annum, and for senior citizens, the interest rate is 5.60% per annum. Interest can be taken out on a monthly basis, and it offers reinvestment of the interest.
Investing your money in a fixed deposit that gives 2 year fd interest rates is a viable option. Before depositing, it is advised to check the fd interest rates all banks provide. You can choose from a wide range of schemes and tenures from the banks or NBFCs listed above or take help from your financial advisor to choose a plan or scheme that is best suited to cater to your needs.
What will happen if I take out my fixed deposit prematurely?
Every bank or NBFC has different ways to deal with this. Even your chosen fixed deposit scheme matters. There can be two things that can happen in this case. Firstly, the bank can charge a penalty which is usually 0.5%-1.00% of the interest rate. Secondly, the bank won't charge anything but also won't give the money that could have been compounded as interest along with the principal.
Can I transfer my fixed deposit to another person?
Yes, you can transfer or gift your fixed deposit to another person. You have to mention a nominee for your fixed deposit to be transferred to.