Where to Invest in Fixed Deposits for Higher Interest?

There are so many investment options such as mutual funds, bonds, stocks, real-estate, etc., but most of the people choose fixed deposit as their favourable investment option. This is because they want to get higher, assured and fixed returns from investment.

To maximize the return on investment of fixed deposit, you can try to invest in these places:

Bank FDs

If you are investing in reputed banks such as State Bank of India (SBI), Punjab National Bank, ICICI Bank, HDFC Bank, etc., the rate of interest varies between 6% to 7.50%. If you are interested in bank FDs, SBI offers the highest interest rate of 7.25%. Senior citizens are offered even higher interest rate that ranges from 7.25% to 7.35%.

The amount of FD cannot be withdrawn before its maturity, so they have lower liquidity. But, if you withdraw prematurely, you are required to pay 1% penalty and bear the loss of interest.

Bank FDs are safe, but the interest rate provided is lower than that provided by company FD.

Company FDs

In Company FDs rate of interest is much higher, and they also give assured and guaranteed returns. You can get interest rate up to 8.40% and senior citizens can get up to 8.75%.