Best Fixed Deposit Schemes of 2021 for the Indian Citizens

Most of us prefer low-risk investment instruments, and fixed deposits are one such scheme. From deposits of banks to non-banking financial companies deposits to time deposits of post offices, the investors today have a wide range of FD options to select from. Many factors make a fixed deposit scheme worthy to invest such as its rate of interest, its flexible tenure, and its safe nature for investing our hard-earned money in it. An important thing about fixed deposits of banks is that these deposits are safeguarded by the Deposit Insurance and Credit Guarantee Corporation.

However, due to the pandemic, the FD interest rates for this year have fallen. In such a situation, the best FD rates offered by some of the small financial banks and commercial banks are mentioned below:

Best FD Rates in 2021

Commercial Banks FD Rates

The fixed deposit rates for commercial banks are:

Best FD Offers by Commercial Banks in India

Name of the Bank

Interest Rate

Tenure

Regular People

Senior Citizens

DCB Bank

6.95%

7.45%

36 months

IDFC First Bank

6.00%

6.50%

500 days

IndusInd Bank

7.00%

7.50%

One year to one year two days

RBL Bank

6.95%

7.45%

36 months to 36 months one day

Yes Bank

7.00%

7.75%

Two years to less than three years

Note: The interest rates are updated on 18th November 2020.

Small Finance Bank:

Best FD Rates Offered by Small Finance Banks in India

Name of the Bank

Interest Rate

Tenure

Regular People

Senior Citizens

Fincare Small Finance Bank

6.50%

7.00%

36 months one day to 42 months

Jana Small Finance Bank

7.50%

8.00%

Less than two years to three years

North East Small Finance Bank

7.50%

8.00%

730 days to less than 1095 days

Suryoday Small Finance Bank

7.50%

8.00%

Five years

Utkarsh Small Finance Bank

7.00%

7.50%

700 days

Note: The rates of interest are updated on 18th November 2020.

Benefits and Features of FD Schemes

The above-mentioned FD interest rates are for different banks. Now we are going to provide a small description of these schemes.

DCB Bank Fixed Deposits:

  • The tenure ranges from seven days to 10 years.
  • The options for interest payment are flexible.
  • The minimum amount that you can deposit in this scheme Rs. 10,000.
  • Feature to take a loan against FD for up to 80% of the FD amount.
  • The scheme offers quarterly, half-yearly, yearly, and quarterly interest pay-out for non-cumulative option.

IDFC First Bank Fixed Deposits:

  • The tenure of this FD ranges from seven days to 10 years.
  • For senior citizens, this bank offers an additional 0.50% interest rate.
  • Simple interest for tenure that is up to 180 days.
  • The senior citizens are not charged any penalty in case of premature withdrawal or closure.
  • For a tenure of more than 180 days, the interest is compounded quarterly.

IndusInd Bank Fixed Deposits:

  • The investment tenure ranges from seven days to five years.
  • Partial withdrawals are allowed.
  • The senior citizens get 0.50% extra FD rates.
  • One can receive the interest on a monthly, quarterly, half-yearly, or yearly basis upon maturity.
  • The facility of nomination and option of auto-renewal is offered.
  • The interest is paid by crediting the amount to the linked current or savings account.

RBL Bank Fixed Deposit:

  • The tenure of the fixed deposit ranges from seven days to 20 years.
  • The facility of nomination is offered.
  • Options of partial withdrawal and total premature withdrawal are provided.
  • The FD account is easily accessible through the internet and mobile banking.

Yes Bank Fixed Deposits:

  • The tenure of this policy ranges from seven days to ten years.
  • The facility of auto-renewal is offered.
  • The facility of overdraft is provided.
  • A sweep-in facility is offered.
  • There is no penalty for premature withdrawal of the fixed deposit.

Fincare Small Finance Bank Fixed Deposits:

  • The tenure of fixed deposits ranges from seven days to seven years.
  • The pay-out of interest is flexible, which is non-cumulative and cumulative (quarterly/ monthly).
  • The fixed deposit rate for senior citizens is 0.50% extra.
  • For deposits up to Rs.2 Crore, the FD rates can go up to 7.50%.
  • Pre-closure and flexible renewals are offered.

Jana Small Finance Bank Fixed Deposits:

  • The tenure of fixed deposits ranges from seven days to 10 years.
  • The initial deposit amount to start the FD is Rs. 1,000.
  • The Jana Small Finance Bank provides the option to choose non-cumulative and cumulative options (quarterly, yearly, half-yearly, and monthly basis).
  • Easy application through a mobile banking app.

North East Small Finance Bank Fixed Deposits:

  • The tenure of these FDs ranges from seven days to ten years.
  • The facility of partial withdrawal is offered.
  • The minimum deposited amount is Rs. 1,000.
  • The option of reinvestment is provided.
  • The facility of auto-renewal is offered.

Suryodaya Small Finance Bank Fixed Deposits:

  • The tenure of the FDs of this bank ranges from seven days to 10 years.
  • Cumulative and non-cumulative options are provided.
  • Affordable FD amount that starts from Rs. 1,000.
  • Extra 0.25% rate of interest for fixed deposits for senior citizens is offered.
  • A simple rate of interest is paid for FDs maturing in less than six months.
  • If the FD is withdrawn in less than seven days from the opening date, then no interest is paid.
  • The interest is compounded quarterly for the deposits that are maturing in six months and more.

Utkarsh Small Finance Bank Fixed Deposits:

  • The tenure of the FDs of Utkarsh Small Finance Bank ranges from seven days to 10 years.
  • Minimum investment of Rs. 1,000.
  • The depositor can appoint his/her nominee online.
  • Hindu Undivided Families, Resident Indians, Partnership Firms, Sole Proprietorship, Trusts Accounts, and Limited Companies are eligible to open a Fixed Deposit account with this bank.
You may like to Read: HDFC Bank FD Rates

The Final Words!

These are some of the best fixed deposit schemes for the year 2021. You can choose a scheme as per your convenience and requirement.

Written By: PolicyBazaar - Updated: 05 January 2021
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