Best FD Review for Indian Residents| North Loop Official Blog
North Loop Logo
North Loop
04 Sep 2020

Best FD Review for Indian Residents

thumbnail for Best FD Review for Indian Residents
Credit: North Loop

Fixed Deposits: Overview-

Fixed deposits (FDs) are investment schemes offered by a plethora of banks around the world. Fixed deposits are one of the most secure modes of investments as the principal amount deposited remains untouched. For those who have idle cash parked in their bank accounts, FDs earn a higher rate of interest than normal savings accounts do.

Before proceeding to our top FD picks, let us first understand how Fixed Deposits work.First, a lumpsum amount of money needs to be deposited with the bank and a lock-in period needs to be decided upon. Based on the amount deposited and the lock-in period, a fixed rate of interest is earned that can be collected either periodically or at maturity.
Conventionally, the FD lock-in tenures for Indian Residents start at 7 days and can go all the way up to 10 years. The longer the tenure, the higher the rate of interest, and the larger the amount deposited, the higher the returns.

Although Fixed Deposits can earn significantly lesser returns in comparison to mutual funds, SIPs, stocks, and various others, FDs tend to be more of a lower risk lower returns kind of scheme. In the case of the other schemes, the principal amount would directly be risked for higher returns whereas in the case of FDs, since the principal amount remains untouched, the exposure to risk is significantly lesser relatively.

Bank Name FD Rate Of Interest
North Loop7%
HDFC Bank5.50%
ICICI Bank5.50%
Axis Bank5.50%
SBI5.40%

Start investing for free with North Loop and get personalized recommendations

What can be inferred from the above data is that private sector banks tend to offer more interest rates on fixed deposits and usually have more flexibility pertaining to the duration of the lock-in period. However, you might find it more secure to open an FD account at a public sector bank despite slightly lower interest rates offered.

Top 5 bank fixed deposit interest rates:
Lock-in Period=1 Year with a deposit of Rs. 100,000
Bank Name :Rate Of Interest (compounded annually):Return:
North Loop7%107,186
HDFC Bank5.10%105,198
Axis Bank5.10%105,198
ICICI Bank5.10%105,198
SBI5.10%105,198

Top 5 bank fixed deposit interest rates:
Lock-in Period=5 Year with a deposit of Rs. 100,000
Bank Name :Rate Of Interest (compounded annually):Return:
North Loop7%₹141,478
HDFC Bank5.50%₹130,760
Axis Bank5.50%₹131,407
ICICI Bank5.50%₹131,408
SBI5.50%₹131,409

The best Fixed Deposit scheme can be selected based on a mix of various factors like tenure, rate of interest, and flexibility. Flexible schemes tend to offer a lot of features like premature withdrawals, loans using FD as collateral, deposits starting at minimal amounts, etc.

North Loop provides a competitive rate of interest on fixed deposits pertaining to Indian Residents and provides industry-leading interest rates on FDs pertaining to Non-Resident Indians (NRIs).Moreover, there is the flexibility to choose lock-in periods out of a diverse set of tenure options, bare minimum paperwork, minimal and transparent fees, overdraft options up to 80%, and a lot more. Get in touch with our relationship managers for a free consultation and explore the world of investing today! Click here for more info

Save money with

No-fee banking, investments, remittances & insurance for the global Indian

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.