Latest Fixed Deposit (FD) Rates: NBFCs, Banks and Co-operative Banks

According to a recent data presented by the Reserve Bank of India, financial institutions in India had an aggregate deposit amounting to $1822.708 Billion for 2019 alone. A substantial portion of this quantum consists of fixed deposits from various public and private sector financial institutions of the country. Apart from these, individuals also maintain fixed deposit accounts with several non-banking financial institutions.

Uniform fixed deposit interest rates, alongside assurance of stable returns, also contribute to the popularity of these savings schemes. The interest earned on these schemes is either paid out at regular intervals, withdrawn after maturity or can be re-invested at the investor’s discretion.

Following is an overview of the latest interest rates offered by various NBFCs, government-backed and co-operative financial institutions in India.

Rates offered by NBFCs 

Various financial institutions in India offer fixed deposit schemes with flexible terms and assured returns. One such NBFC is Bajaj Finance popular for its Fixed Deposit schemes for regular investors, senior citizens and NRIs. For 2019, the fixed deposit interest rates offered by NBFCs range between 8.35% and 8.70% per annum, which allow investors to accumulate a sizeable corpus against their invested amount.

Further, individuals above the age of 60 years can avail an additional 0.35% on the applicable interest rate and generate higher returns from their fixed deposit investments.

Apart from attractive interest rates, investing in fixed deposit schemes with NBFCs also allow individuals to enjoy several other benefits. These are as follows – 

  • A low minimum deposit amount of Rs. 25,000 that makes investing in the scheme much more accessible for individuals.
  • Senior citizens, apart from enjoying higher fixed deposit interest rates, can also choose to avail periodic payouts from their FD returns to fund their regular expenses.
  • Investing with the right NBFC can also bring assured and stable returns backed by some of the highest ratings like FAAA from CRISIL, MAAA from ICRA, etc.
  • These fixed deposit schemes also come with variable tenor and payout facilities, allowing investors to withdraw from their accounts as per their requirement.

Apart from these factors, holding fixed deposit accounts with NBFCs also offer individuals with facilities like loan against their invested corpus, auto-renewal on maturity, etc.

Investors can easily calculate the interest on their deposited amount by using online FD interest calculator, provided by these financial institutions and estimate the returns in advance.

Rates offered by government-backed financial institutions – 

For government-backed financial institutions, the fixed deposit interest rates are lower than those from NBFCs. These interest rates are offered at the discretion of the financial institutions and can vary from one institution to the other.

Like NBFCs, these government-backed financial institutions offer a higher interest rate to senior citizens, allowing them to generate attractive, risk-free returns and increase their retirement savings.

As of 2019, fixed deposit rates offered by these institutions vary around 7% per annum. For senior citizens, it can go up to 7.40%. 

Rates offered by co-operative financial institutions – 

Co-operative financial institutions, similar to NBFCs, offer high fixed deposit interest rates. The rates for these institutions vary between 6.80% per annum and 8.50% per annum. These fixed deposits are lucrative investment options for senior citizens as well, who can avail higher interest on their invested amount.

Nonetheless, before investing in a scheme from any of the above three options, you should check other features offered to maximise the returns on your fixed deposit.

How is the return on fixed deposit calculated?

The returns from fixed deposit investments are determined according to the frequency of interest payouts and applicable interest rates.

For those compounded periodically, interest is calculated using the formula given below – 

A = P (1+R/100) ^N

Where A = maturity amount (in Rs.), P = principal amount (in Rs.), N = the tenor (in years), R = rate of interest (in %).

If the interest is compounded quarterly, the equation to calculate the same is – 

A= P (1+(R/4)/100) ^4N

Nevertheless, to forego such complicated calculations, one can easily use an FD interest calculator and estimate their interest amount. It also functions as a calculator for the total maturity amount they will receive at the tenor’s end.

Fixed deposits are thus ideal investment options when it comes to making life easier in your golden years. However, before choosing to invest in fixed deposits schemes of any of the above-mentioned institutions, make sure you check their terms carefully to maximise the benefits.