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Bank Fd 8.5 interest rate | best fd interest rates 2025 india

  • Author: Profitaxis
  • Published On: January 17, 2025
  • Category:Latest News
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Banks and Interest Rates

Big Banks (High Safety, Lower Interest Rates)

  • SBI: Up to 7% for general and up to 7.5% for senior citizens. Popular tenure: 2 years to less than 7 years.
  • ICICI Bank: 7.25% for 15–18 months for general and 7.75% for senior citizens.
  • Axis Bank: 7.25% for 15–18 months for general and 7.75% for senior citizens.

Small Finance Banks (Higher Interest Rates, Moderate Risk)

  • Suryoday Small Finance Bank: 8.65% for general and 9.1% for senior citizens.
  • Utkarsh Small Finance Bank: Offers similar rates.
  • Unity Small Finance Bank: Up to 9.5% for senior citizens.
  • North East Small Finance Bank: Provides competitive rates.

NBFCs (Higher Returns, No DICGC Insurance)

Bajaj Finance and Shriram Finance offer competitive FD rates but lack DICGC insurance, hence carry higher risk.

Platforms for FD Investment

  • Stable Money App:
    • Allows comparison of FD rates across banks.
    • Facilitates direct FD bookings without the need to open a bank account.
    • Ensures the FD is created directly with the bank.
  • Win Wealth:
    • Similar functionality but may require opening a savings account.

Both platforms save time by avoiding physical visits to banks and simplify tracking and managing FDs in multiple banks.

Key Recommendations

  • For Safety: Invest large amounts in established banks like SBI, ICICI, and Axis. Limit investments in small finance banks to ₹5 lakhs per bank to leverage DICGC insurance.
  • For Higher Returns: Explore small finance banks for smaller amounts and diversify across multiple banks to mitigate risk.
  • Precautions: Verify FD creation through email/SMS from the bank and regularly monitor the performance of small finance banks.
  • For Seniors: Leverage higher rates offered by banks for senior citizens by investing in their names.

Two Trusted Apps for Creating FDs

  • Stable Money: Offers FD options from multiple small finance banks, including:
    • Suryodaya Small Finance Bank
    • Utkarsh Small Finance Bank
    • Shivalik Small Finance Bank
    • Shriram Finance (Note: No ₹5 lakh insurance for NBFCs like Shriram and Bajaj Finance)
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Banks and Interest Rates

Big Banks (High Safety, Lower Interest Rates)

  • SBI: General: Up to 7%, Senior Citizens: Up to 7.5%. Popular tenure: 2 years to less than 7 years.
  • ICICI Bank: General: 7.25% for 15–18 months, Senior Citizens: 7.75% for the same tenure.
  • Axis Bank: General: 7.25% for 15–18 months, Senior Citizens: 7.75%.

Small Finance Banks (Higher Interest Rates, Moderate Risk)

  • Suryoday Small Finance Bank: 8.65% for general, 9.1% for senior citizens.
  • Utkarsh Small Finance Bank: Similar rates.
  • Unity Small Finance Bank: Up to 9.5% for senior citizens.
  • North East Small Finance Bank: Competitive rates.

NBFCs (Higher Returns, No DICGC Insurance)

Bajaj Finance and Shriram Finance offer competitive FD rates but lack DICGC insurance, hence carry higher risk.

Platforms for FD Investment

  • Stable Money App:
    • Allows comparison of FD rates across banks.
    • Facilitates direct FD bookings without the need to open a bank account.
    • Ensures the FD is created directly with the bank.

    Interest Rates: Senior Citizens: Up to 9.10%, Regular Investors: Up to 8.65%. Government insurance for amounts up to ₹5 lakh with certain banks.

    Investment Process:

    • Select a bank from the app (e.g., Suryodaya, Utkarsh).
    • Input investment details and tenure.
    • Make the payment directly, and your FD is created.
  • Win Wealth:
    • Offers FDs with higher rates for both regular and senior citizens.
    • Requires opening a savings account to complete the FD process.

    Interest Rates: Regular Investors: Up to 9%, Senior Citizens: Up to 9.50%.

    Investment Process:

    • Open a savings account directly within the app.
    • Choose the FD amount and tenure.
    • Complete payment to book your FD.

Comparison: Stable Money vs. Win Wealth

FeatureStable MoneyWin Wealth
Bank Account NeededNoYes
Max Interest Rate8.65% (Regular), 9.10% (Senior)9% (Regular), 9.50% (Senior)
Government InsuranceUp to ₹5 lakh for certain banksUp to ₹5 lakh for certain banks

Why Choose Fixed Deposits?

  • Safety of Funds: Guaranteed returns with minimal risk.
  • Customized Tenures: Flexible duration options to match your goals.
  • Higher Returns for Senior Citizens: Additional interest to benefit retirees.

Who Should Invest in FDs?

  • Individuals seeking low-risk investments.
  • Retirees looking for secure and stable income.
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Investing in Fixed Deposits

1. What kind of investors should opt for FDs?

  • Investors with a low-risk appetite and seeking stable, assured returns should consider FDs.
  • Ideal for individuals who prioritize capital protection over higher but volatile returns from equities or mutual funds.

2. What should you keep in mind while doing an FD to ensure safety?

  • Choose Reputable Banks: Prefer FDs in large, well-established banks for better security.
  • DICGC Insurance: Ensure the bank is insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC), which covers deposits up to ₹5 lakh.
  • Diversification: Avoid placing large amounts in a single small finance bank; distribute across multiple banks to mitigate risk.
  • Check Bank Ratings: Verify the credit ratings of smaller banks if opting for higher interest rates.

3. Which banks offer the highest FD interest rates?

  • Small finance banks like Unity Bank and North East Bank often provide the highest interest rates (e.g., up to 9.5%).
  • Major banks like SBI and ICICI offer competitive rates for senior citizens, ranging from 7.5% to 7.9%.

4. Is now the best time to invest in FDs?

Yes, the current FD rates are high due to elevated interest rates in the Indian economy. Rates are likely to decrease as the RBI is expected to cut interest rates soon. Locking in FDs now secures higher rates for the term.

5. Can investing in FDs be risky?

  • Risk is minimal, but to avoid issues:
    • Invest only in insured banks.
    • Keep amounts within the ₹5 lakh insurance limit per bank.
    • Even in case of bank liquidation, insured amounts are disbursed within a few months.

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