Maximizing Returns: Top FD Options in India (2024)

The world of investing can feel overwhelming, especially for beginners. But fear not! Fixed Deposits (FDs) are a safe and secure way to get your feet wet in growing your money in India. This blog will be your compass, guiding you through everything you need to know about FDs, including how to plan your investment strategy with the help of the user-friendly Simplifin app.

Why Fixed Deposits?

Fixed Deposits (FDs) are a low-risk investment option offered by Banks and Non-Banking Financial Companies (NBFCs). They work like a special type of savings account where you deposit a specific amount of money and lock it in for a predetermined period. In return, you earn a guaranteed interest rate on your deposit throughout the tenure. Unlike regular savings accounts, FDs offer a significantly higher interest rate due to the fixed nature of your investment. This predictability makes them ideal for those seeking:

Safety and Security: Deposits in Bank FDs up to Rs. 5 Lakhs are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), providing an additional layer of security for your hard-earned money.

Predictable Returns: FDs eliminate the uncertainty of market-linked investments. You know exactly how much interest you’ll earn throughout the tenure, allowing you to plan your finances more effectively.

Flexibility: FDs come in a variety of tenures, allowing you to choose an option that aligns with your goals. Need the money soon? Opt for a short-term FD. Saving for a long-term objective? Lock it in for a longer tenure to potentially earn a higher interest rate.

Liquidity: While FDs are locked-in investments, some institutions offer the option of premature withdrawals. However, this usually comes with a penalty that reduces your overall return.

Why Consider Small Finance Banks and NBFCs for FDs?

When choosing to create an FD, there are certain factors that are very important such as the interest rates, safety and security, and flexibility. Small Finance Banks (SFBs) and NBFCs provide greater value across all these parameters.

Reputable Institutions: Institutions such as Shriram Finance, Fincare Small Finance Bank, AU Small Finance Bank, Bajaj Finance, and Mahindra Finance are well-established financial institutions with a strong track record in India.

Competitive Interest Rates: They are known for offering competitive FD interest rates, making them a good choice for maximizing your returns. You can compare rates across all these players within the Simplifin app to find the best fit for your needs.

Flexible Tenures: They cater to a wide range of investment needs by offering FDs with a variety of tenures. Whether you’re looking for a short-term or long-term investment, they have an option for you.

Current Rates and Minimum Investment Amounts

Here’s a snapshot of the current highest interest rates and minimum investment amounts offered by Shriram Finance, AU Small Finance Bank, and other similar institutions:

Additional Benefits for Senior Citizens

Senior citizens (aged 60 years and above) are offered special interest rates on FDs. Typically, these rates are 0.50% to 0.75% higher than the rates offered to the general public. This makes FDs an even more attractive investment option for retirees seeking a steady stream of income.

Simplifin App: Your One-Stop FD Solution

Gone are the days of visiting multiple banks and filling out lengthy forms! Simplifin streamlines your FD investment journey by offering a convenient and user-friendly platform:

Easy Investment: Invest in FDs from Shriram Finance, AU Small Finance Bank, and other trusted institutions directly through the app in a few clicks. No more branch visits or complicated paperwork.

Goal-based Planning: Set your financial goals within the app. Whether you’re saving for a down payment, a child’s education, or a dream vacation, Simplifin will recommend suitable FD plans based on your needs and chosen tenure.

Personalized Investment Strategies: Get personalized investment strategies curated to meet your goals.