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Top Fixed Deposit Schemes in India

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Fixed deposit schemes are prized picks for many looking to securely grow their savings. These schemes stand out for their simple, risk-averse nature, offering a fixed return over time devoid of market volatility.

By locking away a lump sum for a specified period, you earn interest and get back the principal amount after maturity. The assurance of returns makes it a reliable choice. Opting for fixed deposits is wise as it cultivates a saving habit, provides financial backup, and can be started with a small amount.

This article sheds light on the best FD schemes in India, exploring their unique features and benefits, to help you make an informed choice in securing your financial future.

What are Fixed Deposit Schemes?

A fixed deposit scheme is a type of investment where you deposit a lump sum amount with a bank or a financial institution for a specified period at a fixed interest rate. Unlike savings accounts, once the money is deposited in a fixed deposit plan, it can't be withdrawn before maturity without penalties.

Notably, the interest rates of fixed schemes are generally higher compared to regular savings accounts. Furthermore, the rate of interest remains fixed throughout the tenure, providing a predictable return.

Advantages of fixed deposit schemes:

  • Guaranteed returns
  • Easy to understand and set up
  • Encourages savings
  • Offers higher interest rates compared to savings accounts
  • Provides financial security over the tenure of the deposit

Now, let's explore the best corporate and bank fixed deposit schemes one by one, understanding the distinct features of both types.

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Types of Fixed Deposit Schemes

Let’s first understand the two types of fixed deposit schemes –

  1. Bank Fixed Deposit Schemes: Bank fixed deposit schemes are provided by banks where your money is deposited for a defined period with a fixed rate of interest. They are considered very safe, although the interest rates are usually lower compared to corporate fixed deposit schemes. Bank fixed deposit schemes are regulated by the Reserve Bank of India, which ensures a certain level of safety for your investment.
  2. Corporate Fixed Deposit Schemes: Corporate fixed deposit schemes are offered by financial institutions or companies. They usually offer higher interest rates compared to bank fixed deposits, making them more attractive for higher returns. However, they come with higher risk due to the varying financial stability of companies. 

It's essential to check the credit rating of the corporate fixed deposit to ensure the safety of your investment.

Bank Fixed Deposit Schemes

Listed below are some of the popular bank fixed deposit schemes along with their features and benefits –

ICICI Bank – Dream Retirement Plan

  • Retirement-focused investment
  • Defined investment and benefit periods
  • Annual payouts during the benefit period
  • Lump sum payout at maturity
  • Minimum deposit: INR 2,000
  • Tenure: 10 years at an interest rate of 8.5%

ICICI Bank – Dream Education Plan Fixed Deposit Scheme

  • Tailored for children's education planning
  • Comprises investment and benefit phases, with monthly investments during the investment period
  • Annual payouts during the benefit period, with the principal amount being paid out at maturity
  • Investment term ranges from 1 to 10 years at an interest rate of 8.5%
  • Minimum deposit: INR 500
  • Requirement: ICICI Bank Youngsters Account for availing this scheme

Vijaya Bank – V Vijaya Scheme

  • Short-term fixed deposit scheme with a tenure of 1 year
  • Offers a competitive interest rate of 9.1% p.a
  • No auto-renewal feature
  • Minimum deposit amount varies by region: INR 10,000 for rural, INR 25,000 for semi-urban, INR 50,000 for urban, and INR 1,00,000 for metro residents
  • The scheme aims to cater to different segments of the population by varying the minimum deposit amount
  • Attractive option for those seeking a high-interest rate over a short term

J&K Bank – Super Earner Deposits Scheme

  • Features floating interest rates, adjusted periodically by the bank
  • Interest rates have a tendency to increase, making it a lucrative investment option
  • Investment range: INR 1,000 to INR 10,00,000 
  • Tenure ranges from 6 months to 10 years
  • Interest rate: 9% p.a
  • Flexible investment amounts and tenure make it adaptable to different financial capacities and goals

HDFC Bank – Regular Fixed Deposits Scheme

  • Straightforward investment mechanism
  • Offers a blend of competitive interest rates, flexibility, and safety
  • Interest rates range from a minimum of 3.5% to a maximum of 6.9%
  • Open to Indian residents, Hindu Undivided Families, Partnership firms, Sole proprietorship firms, Limited companies, and Trust accounts
  • Interest can be reinvested, or paid out monthly or quarterly based on the scheme variant
  • A secure way to grow savings with a reputable banking institution

SBI Bank – SBI Term Deposits

  • Hassle-free investment option with attractive interest rates
  • Interest rates vary between 4.5% and 6.75%
  • Minimum deposit amount: INR 1,000, with no cap on the maximum deposit
  • Senior citizens enjoy an additional interest rate of 0.25% for deposits above INR 10,000
  • Facility for premature withdrawal
  • Flexible tenure options catering to short-term and long-term investment goals

IDBI Bank – Suvidha Tax Saving Fixed Deposits

  • Tailored for tax savings under Section 80C of the IT Act
  • Provides a lucrative interest rate of 6% per annum
  • Open to individuals and Hindu Undivided Families (HUF)
  • Investment cap of INR 1.5 lakh for a tenure of 5 years
  • Tax benefits along with competitive returns on investment
  • Secure and compliant way to save on taxes while growing your investment

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Corporate Fixed Deposit Schemes

Mentioned below are the prominent fixed deposit schemes – 

NHB (National Housing Board)

  • Supervised by the Reserve Bank of India, focused on affordable housing credit
  • Minimum deposit of INR 50,000 required
  • No TDS deduction for interest income up to INR 5,000
  • Interest rate of 9.25% offered
  • Provision for premature cancellation under certain terms
  • Supports housing finance accessibility

HUDCO

  • Techno-financing institution backed by the Government of India
  • Minimum deposit: INR 50,000 
  • No TDS on interest income up to INR 5,000
  • Variable interest rates: 9% p.a. for 1 year, 9.1% p.a. for 2 years, and so on
  • Loan facility available
  • Additional 0.25% interest for senior citizens
  • Encourages investments with a higher return compared to many traditional banking schemes

Mahindra and Mahindra Financial Services Limited

  • Prominent NBFC offering personalised vehicle financing solutions
  • Minimum deposit: INR 50,000
  • Interest rates: 9.25% p.a. for 1 year, 10.08% p.a. for 2 years, and so on
  • Extended tenure options from 1 to 6 years
  • Senior citizens receive an additional 0.25% interest
  • Tailored to both urban and rural sectors, enhancing its accessibility

Plethico Pharmaceuticals

  • Interest rate structured with consideration for all age groups
  • For a 3-year fixed deposit, an interest rate of 12% is offered
  • Senior citizens receive an additional 0.5% interest
  • Aims to provide a higher return on investment over the tenure
  • Tailored to cater to a broad demographic, ensuring inclusivity
  • Convenient for individuals seeking higher interest rates

DHFL Aashray Deposit

  • Corporate FD scheme with an attractive interest rate
  • Aims for high return on investment, catering to diverse customer needs
  • Tenure ranges from 12 to 120 months
  • Maximum interest rate of 8% p.a.
  • Minimum deposit of INR 2,000 across various tenures
  • Suitable for individuals looking for longer-term investment options with decent returns

Shriram Transport Finance Company Fixed Deposits

  • Offered by a renowned commercial vehicle non-banking finance company
  • Lucrative interest rates of 7.95% to 8.88% p.a
  • Tenure flexibility ranging from 12 months to 5 years
  • Senior citizens enjoy higher interest rates
  • Interest rates on cumulative deposits enhance savings potential
  • Ideal for individuals seeking competitive interest rates over mid to long-term periods

ICICI Home Finance Fixed Deposits

  • Subsidiary of ICICI Bank, specialising in home financing
  • Tenure ranges within minimum and maximum limits of 1 year and 5 years, respectively
  • Cumulative interest applied for higher returns
  • Competitive interest rates for both the general public and senior citizens
  • A reputable option for individuals looking for fixed returns over a medium to long-term period
  • Seniors benefit from slightly higher interest rates, enhancing their investment returns

To Sum Up

The article encapsulated an array of top fixed deposit schemes and fixed deposit plans across both banking and corporate sectors in India. By exploring their unique features and benefits, potential investors can have a pathway to navigate through the myriad of fixed deposit schemes available.

Whether it's the safety and modest returns from bank fixed deposit schemes or the potentially higher but riskier returns from corporate fixed deposit schemes, the choice depends on individual financial goals and risk tolerance. Ultimately, it is crucial to make an informed decision on where to place one's hard-earned money.

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