FD Returns

Fixed Deposit in India

Fixed Deposit is an investment scheme, where you deposit an amount for a fixed time to earn interest. Banks and non-banking companies offer this scheme. Here we will see how to maximize the FD returns and compare the fixed deposit in India.

Maximize your FD returns

Banks usually pay interest on FDs quarterly or at longer intervals. Now, The Reserve Bank of India (RBI) instructs them to give the option to pay interest at an interval shorter than a quarter to their customers.

Let see the example

Suppose you do the FD of Rs. 100,000/- at the rate of 7% for 5 years. Let us see the four different options:

  • With no reinvested option, you will earn Rs. xxxxx
  • In the half-yearly reinvested option, you will earn Rs. xxxx
  • With the quarterly reinvested option, you will earn Rs. xxxx
  • With a monthly reinvested option, you will earn Rs. xxxxx

And if it is compounded daily at an interest rate of 7% per annum, you would earn Rs. XXXX in five years. The more frequent the compounding, the higher the returns.

Fixed Deposit Rates in India

Post Office : Post office give you return at 6.7% on FD.

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