If you’re looking for an investment option that provides stable returns with little to no investment risk, then fixed deposits are the way to go. However, with many different institutions offering fixed deposit facilities and various types of fixed deposit schemes, choosing the right institution can get quite overwhelming. That said, here’s something that can help you out.
Best institutions to open a fixed deposit account in 2021
In this article, we’re going to take a look at a few of the best institutions that you can choose to go with, for opening a fixed deposit account. Since the FD rate of interest tends to vary depending on the tenor, we’ll take the tenor to be 3 years to enable a fair comparison.
1. YES Bank
Among the mainstream banking institutions, YES Bank currently offers the highest FD rate of interest of 6.5% per annum for regular individuals. For senior citizens, the bank offers an interest rate of 7% per annum.
2. Fincare Small Finance Bank
Despite being a small finance bank, the institution offers 6.3% per annum as FD rate of interest to regular individuals. Whereas for senior citizens, the rate of interest offered by the bank increases to 6.8% per annum.
Kerala Transport Development Finance Corporation (KTDFC) is a Non-Banking Financial Company (NBFC) owned by the Government of Kerala. The financial institution offers an attractive interest rate of 6% per annum to regular individuals and 6.25% per annum to senior citizens. They also have multiple types of fixed deposit schemes, namely, Periodic Interest Payment Schemes (PIPS) and Money Multiplier Schemes (MMS).
4. Shriram City Union Finance
Another NBFC, Shriram City offers the highest FD rate of interest among all of the institutions in this list. For regular individuals, the rate of interest is set at 8.84% per annum, with senior citizens receiving 9.24% per annum.
5. Sundaram Finance
The regular rate of interest offered by Sundaram Finance for a 3-year fixed deposit is 6.25% per annum. And for senior citizens, the FD interest rate goes up to 6.75% per annum. The institution provides a host of additional benefits, which are in line with other fixed deposits.
Now that you know what the best institutions for opening a fixed deposit account in 2021 are, go ahead and start right away. If you ever need more information on fixed deposits or the different types of fixed deposits available for investment, make sure to visit Finserv MARKETS.