How to Evaluate & Choose the Top Fixed Deposits in India

Are you looking to invest your hard-earned money in a safe, secure fixed deposit that offers attractive returns? With so many banks, NBFCs, and corporations offering FDs today, how do you choose the best one? Comparing fixed deposits can be tricky, with each provider touting different interest rates, tenures and features.

Don’t worry—we’ve got you covered. In this article, we’ll walk you through the key factors to consider when evaluating FD providers. From banks offering the highest FD rates to the safety of your investment, we’ll help you make an informed decision. Let’s dive in and find the top fixed deposit for your needs.

Why Fixed Deposits?

Before we compare FD providers, let’s quickly recap why fixed deposits make an excellent investment:

• Guaranteed returns: Unlike market-linked investments, FDs offer assured returns at a fixed rate

• Flexible tenures: Choose an FD tenure from 7 days to 10 years based on your goals

• Low risk: Bank FDs up to ₹5 lakh are insured by DICGC, making them a low-risk investment

• Regular income: Opt for periodic interest payouts to create a consistent income stream

Bank FDs vs Corporate FDs

Fixed deposits are broadly classified into two categories:

• Bank Fixed Deposits

  • Offered by commercial banks like SBI, HDFC Bank, ICICI Bank etc.

  • Lower interest rates than corporate FDs but considered safer

  • Deposits up to ₹5 lakh insured by DICGC

• Corporate Fixed Deposits

  • Issued by NBFCs, housing finance companies, manufacturing firms, etc. to raise funds

  • Offer higher interest rates than bank FDs

  • Not insured by DICGC; safety depends on company’s financial health

Top 5 Factors to Compare Fixed Deposits

Now that you know the types of FDs, here are the top 5 parameters to evaluate before investing:

• Interest Rates
  The FD interest rate determines your returns. Always compare the rates offered by different providers for your preferred tenure. Here’s a quick comparison of some of the top FD rates:

As you can see, corporate FDs generally offer 1%-3% higher rates than bank FDs. However, don’t get swayed by high rates alone. Evaluate the company’s credibility and read the fine print carefully.

• Company Background & Ratings
  For corporate FDs, assessing the company’s financials, repayment track record and stability are crucial. Prefer investing in FDs from well-established firms with consistent profitability and strong parentage.

Credit ratings assigned by CRISIL, ICRA and CARE indicate the company’s ability to repay deposits. Choose companies rated ‘FAAA’ or ‘AAA’ denoted Highest Safety.

For instance, Airtel Finance FDs are rated ‘FAAA’ by CRISIL, indicating highest safety and credibility.

• Payout Options
  Fixed deposits offer two types of interest payouts:

  • Cumulative: Interest is compounded annually and paid at maturity along with principal. Suitable for long-term savings.

  • Non-Cumulative: Interest is paid out periodically—monthly, quarterly, or annually. Helps create a regular income.

For example: Suppose you invest ₹5 lakh in an FD at 7% for 3 years.

In cumulative option, you’ll earn ₹1.17 lakh as interest, getting ₹6.17 lakh at maturity

In non-cumulative option with annual payout, you’ll get ₹35,000 interest each year

• Premature Withdrawal & Loan Facility
  While FDs are meant for locking funds till maturity, emergencies can arise anytime. Check if the FD allows premature withdrawals and whether it charges a penalty.

Also see if you can avail a loan against your FD in case of urgent cash needs. Airtel Finance FD allows loan up to 70% of FD amount.

• Minimum Deposit & Tenure
  Finally, check the minimum deposit amount and tenure flexibility. Most bank FDs have a low minimum deposit of ₹1000-₹5000 and tenures from 7 days to 10 years.

Corporate FDs usually have higher minimum deposits of ₹25,000 and up. Some also have limited tenures like 1, 2, 3 years only.

How to Calculate FD Returns?

Found your top fixed deposit option? Great! Before investing, calculate the maturity amount and returns using an FD Calculator. Here’s a quick walkthrough:

• Enter your deposit amount, say ₹2 lakh

• Select interest rate, say 8% p.a.

• Choose tenure, say 3 years

• Pick cumulative/non-cumulative

• Hit Calculate

The calculator will instantly display:

• Interest Earned: ₹52,264

• Maturity Value: ₹2,52,264

This way, you can compare returns across different FDs and invest smartly. The Airtel Finance FD calculator is a handy tool to check your earnings in seconds.

Ready to invest in Airtel Finance FD? Here are the simple steps:

1. Choose your FD amount and tenure

2. Submit documents like PAN, address & bank account proof

3. Complete a quick video KYC via the Airtel Thanks app

4. Transfer funds to your Airtel Finance account

5. Start earning interest from day one!

Track your FD balance, payouts and maturity seamlessly on the app. Enjoy zero fees, doorstep service and up to 9.5% interest with Airtel Finance!

Conclusion:

We hope this guide helps you find the top fixed deposit that matches your needs. Remember, when you compare FDs, look beyond interest rates. Consider factors like safety, company background, payout options, tenure and premature withdrawal terms. Use an FD interest calculator to estimate your returns accurately.

Ready to start earning high returns on your savings? Explore Airtel Finance Fixed Deposits and enjoy up to 8% interest, along with the trust of CRISIL’s FAAA rating. With a quick 3-step process, zero fees, minimal documentation, and flexible tenures, Airtel Finance offers the best FD experience. Open your Airtel Finance FD now and watch your savings grow!

FAQs:

1. Which company’s FD is best?
   Companies like Bajaj Finance, PNB Housing, Shriram Transport and Airtel Finance offer some of the highest FD interest rates up to 9%, along with top credit ratings indicating safety.

    

2. How to choose company FD?
   Check the company’s financials, credit rating from CRISIL/ICRA/CARE, interest rates for your preferred tenure, minimum deposit amount and premature withdrawal terms before investing.

    

3. Which bank is best for fixed deposits?
   Top banks like SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank offer FDs with attractive interest rates, safety of a bank and deposit insurance cover up to ₹5 lakh.

    

4. Which platform is best for FD?
   Airtel Finance offers a completely online FD process with quick video KYC, zero fees, flexible tenures from 6 months to 5 years and interest rates up to 8% along with CRISIL’s highest FAAA safety rating.

    

5. Which is the safest FD in India?
   Bank FDs are considered the safest as they are insured up to ₹5 lakh by DICGC. For corporate FDs, look for a top credit rating like CRISIL FAAA or MAAA indicating highest safety and ability to repay deposits.