Do you want to grow your money while it sits idle? Do you want to secure your uncertain future? Well, fixed deposits can have your back.
FDs are the go-to investment option for most Indians. That is because they are free from all market risks. You will get a guaranteed return on maturity.
Moreover, the return is predetermined. So, you will be able to plan your future accordingly.
What is the Minimum Amount For FD?
The minimum amount of deposit that most banks and NBFCs allow is Rs 10,000. However, if it is a monthly income scheme, you might have to invest more.
PNB Housing lets you open an Fixed Deposit account for Rs10,000. And, you need to deposit a minimum of Rs 20,000 if you wish to get monthly interest payments.
You can get a Fixed Deposit (FD) at virtually any bank in India.
If you’re going to just park your cash, better you do it at the bank where you keep your current account. If you’re looking for FD as an investment, select one from a nationalized bank because they are hard to be closed by RBI than private banks.
Minimum Amount for Fixed Deposit is the minimum amount you’ll be able to save at regular interval in a FD.
This amount varies from bank to bank, mostly between Rs 5000 to Rs 10000. The most common minimum deposit for a fixed deposit is Rs 5000, but it’s not a rule that you’ll get the same everywhere. Banks offer lower minimum deposits to attract small savers and higher amounts to large corporations.
Cumulative and Non-Cumulative Fixed Deposits
Before knowing the rates of interest, let us look at the two types of fixed deposits.
1.Cumulative Fixed Deposits – In cumulative deposits, the interest gets compounded annually. And you receive the amount on maturity.
2.Non-cumulative fixed deposits – In this case, the interest gets compounded either monthly, quarterly, or half-yearly. You can get the interest at regular intervals. So, it is an excellent option for retired individuals looking for a regular income source.
Fixed Deposit Interest Rates at PNB Housing Finance
PNB Housing offers highest interest rates on fixed deposits. Moreover, senior citizens can get even higher rates.
Let us look at the interest rates on FDs for different tenures
Regular Interest Rates on Cumulative Deposits
|Tenure||Rate of Interest|
|12 to 23 months||5.9% per annum|
|24 to 35 months||6.15% per annum|
|36 to 47 months||6.6% per annum|
|48 to 59 months||6.6% per annum|
|60 to 71 months||6.7% per annum|
|72 to 84 months||6.7% per annum|
|120 months||6.,7% per annum|
Interest Rate for Senior Citizens
|12 to 23 months||5.74% per annum||5.77 % per annum||5.81 % per annum||5.9% per annum|
|24 to 35 months||5.98% per annum||6.01% per annum||6.05 % per annum||6.15% per annum|
|36 to 47 months||6.4 % per annum||6.44% per annum||6.49 % per annum||6.6% per annum|
|48 to 59 months||6.4% per annum||6.44% per annum||6.49 % per annum||6.6 % per annum|
|60 to 71 months||6.5% per annum||6.53 % per annum||6.59 % per annum||6.7% per annum|
|72 to 84 months||6.5% per annum||6.53 % per annum||6.59 % per annum||6.7% per annum|
|120 months||6.5 % per annum||6.53% per annum||6.59 % per annum||6.7% per annum|
The Bottom Line
Investing in a long-term fixed deposit is the best way to secure your future. That way you can also meet your larger financial goals. However, don’t forget to check the current FD interest rates before investing.