best fd rate

Best FD Rates – Let Money Earn for you

Looking for a way that can help you increase your savings without working hard or taking a risk? An investment that can yield regular income and high interest at the end? Yes, an investment in fixed deposit makes all this possible. It is a way that helps the people to earn specified returns on the deposits made for a predetermined period of time.

In short, fixed deposits also known as term deposits are the investment plans in which the depositor pre-set the date of account expiration and receive the deposited amount along with the accumulated interest on the date of maturity. It is a better option of saving rather than depositing the money in the savings account. This is because the interest paid on term deposits is more than the interest paid on the savings account.

The FD rates vary from bank to bank and on each tenure. The best FD rates is offered at the term deposit of 1 year and above. So, longer the tenure higher is the return. Investment in fixed deposit is a hassle-free task as an investor just has to check the rate of interest offered by different banks. The other things that one should consider are as follows:

Investment Amount – It is the amount with which the account is being opened. It is also known as the principal amount. The interest is calculated as a percent of this amount.

Deposit Period – The fixed time period for which you want to book the deposit is to be determined at the time of booking the deposit. It is the maturity period according to which the rate differs.

Interest Rate – The rates are decided on the basis of amount invested and period of deposit. The banks have prescribed rate applicable on various tenures. Before opening the account it is advisable that you should compare and calculate the returns of various banks on different tenure. This ensures that you can gain maximum benefit.

Interest Payout Frequency – Most banks provide the option to select the interest payout frequency. As per the convenience the customer can choose when he/she wants to get the interest.

Who is eligible to open the term deposit?

There is no rigid criteria for opening the fixed deposit account. All Indian residents can open the term deposit. It can be opened either solely or jointly. Other than individual those who can open the term deposit are –

  • Hindu Undivided Families (HUFs)
  • Minor represented by parents/guardian
  • Associations
  • Clubs
  • Trusts
  • Sole proprietorship firms
  • Partnership firms
  • Limited Companies

To open the deposit one has to fill the application form and submit it in the nearest bank branch. Or you can book the fd from the comfort of your home using net banking facility. Along with the application form the candidate has to attach certain documents. These documents vary according to the category of candidate. The category wise document list is provided below:

An Individual, Hindu Undivided Family, Sole Proprietorship Concern-

  • ID Proof – Passport, PAN Card, Driving Licence, Voter ID, Government ID Card, Senior Citizen ID Card
  • Address Proof – Telephone Bill, Electricity Bill, ID Card Issued by Post Office, Bank Statement with Cheque,
  • A photograph


  • Copy of the Trust Deed
  • Copy of the registration certificate
  • Copy of the Resolution of the Trustees authorizing the members concerned to open and operate the account
  • Photographs of the members operating the account

Associations/ Clubs

  • By-laws of the Association
  • Copy of the Resolution by the board authorizing the members concerned to open and operate the account
  • Photographs of the members operating the account

Partnership Firm

  • Partnership Deed
  • Letter from partners approving the persons concerned to open and operate the account
  • Photographs of the persons operating the account


Public or Private Limited Companies

  • Board Resolution / Authority Letter
  • Memorandum & Articles of Association
  • Certificate of Incorporation
  • Certificate of Commencement of Business (Public Limited Company)
  • Form 32 in case list of directors are not original subscribers to Memorandum & Articles of Association (in case of Private Limited Cos) Duly acknowledged by ROC Governing Act / Rules and Regulations(PSUs) (certified true copy)

As saving is important, so is the method of doing it. Investment is the best way to grow your money and therefore while choosing any scheme or plan an investor must check best FD rates.


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