Short term fd rates: The equity market is known for giving high returns in a short time, but it also has a risk. The equity market continues to fluctuate and climb. Right now there is a period of more than 5 months in the stock market, which has caused heavy losses to investors. While most of the shares of every segment have weakened in this decline, investors’ money is also sinking in equity mutual funds. In such a situation, investors are waiting to invest afresh and are waiting for the market to be stable. If you are also in them, then instead of keeping money saving account or keeping it with you, you can invest in 1 year FD. At the same time, when the market is stable, you can use this fund with better interest in a fresh asset allocation.
Fixed deposits are among the highest demand and popular options in India. Fully risk -free, more interest than returns guarantee and savings account is the main reason that FDs attract a large number of investors in large numbers. Talking about FD, the money of investors remains deposited for a fixed period and it gets returns according to the interest already fixed. By the way, the tenure of short -term FD starts from 7 days, but if you wait for 1 year, you will get better returns. By the way, 5 -year -old FD is more popular in the country.
Short term investment will remove tension
While 1 year of FD is in the category of short term investment, FD of 3 years to 5 years comes in long term investment category. If you are an investor of the stock market, but do not want to invest money in equity till the market is stable, then you can be tension free by depositing in 1 year FD. In 1 year, where you will get better interest on your capital, after 1 year, you can use these new people again to invest in equity. The advantage will be that in this 1 year you will also get better returns on your deposit. Experts also believe that in terms of liquidity, some of their money should be invested in such a safe short term options.
How much interest on 1 year FD?
Most of the major banks or small finance banks in the country offer short term FD. Therefore, while choosing the option of short term FD, you can get information about the interest received on it. We have given information about the returns available on 1 year FD from Bank Bazar.com, Paisa Bazar.com and different banks websites here.
Government Bank: Interest on 1 year FD
SBI: 6.80%
PNB: 6.75%
Bank of Baroda: 6.85%
Canara Bank: 6.85%
Bank of India: 6.80%
Bank of Maharashtra: 6.75%
Central Bank of India: 6.80%
Indian Bank: 6.10%
Indian Overseas Bank: 7.10%
Union Bank of India: 6.80%
Private Bank: Interest on 1 year FD
HDFC Bank: 6.60%
ICICI Bank: 6.70%
Axis Bank: 6.70%
Bandhan Bank: 8.05%
City Union Bank: 6.50%
Federal Bank: 7.10%
IDBI Bank: 6.80%
IDFC First Bank: 6.50%
IndusInd Bank: 7.75%
J&K Bank: 6.75%
Karnataka Bank: 7.25%
Karur Vica Bank: 7%
Kotak Mahindra Bank: 7.1%
RBL Bank: 7.5%
South Indian Bank: 6.8%
Yes Bank: 7.75%
Small Finance Bank: Interest on 1 year FD
Yayu Small Finance Bank: 7.25%
Equitas Small Finance Bank: 8.1%
Jana Small Finance Bank: 8.25%
North East Small Finance Bank: 7%
Shivalik Small Finance Bank: 6%
Sunrise Small Finance Bank: 8.25%
Ujjivan Small Finance Bank: 8.1%
Unity Small Finance Bank: 7.85%
Utkarsh Small Finance Bank: 8%
Short term FD has more benefits
Short term FD has more benefits. As if you have done you 5 years FD and only after 1 year you suddenly need money. In this, if you break FD before maturity, then a penalty has to be given. While you have a short term FD, your tension can be removed. If you do not need money on completion of 1 year i.e. maturity, then you can invest it again in a bank giving better interest.
That is, if you have done 1 year FD and after 1 year, the interest rates on FD increase, then you can again lock a better interest rate on it. 1 year FD also has a nominee facility. Keep in mind that the interest received on fixed deposits is taxable. Whether it is 1 year old FD or 5 year old FD. The tax rate depends on individual income tax slab.
