Factors To Consider Before Investing in Fixed Deposits

What is Fixed Deposit

A fixed income savings account, where you deposit money for a decided period with an already fixed interest rate is your fixed deposit. Fixed deposits are offered by all the significant banks and money-related foundations. In this plan, you can contribute a particular amount, and on the amount contributed, you will get a fixed interest.

The amount that you can invest in a fixed deposit depends upon your financial conditions. You will have to put in some research before making an investment decision so that you do not end up losing out on your investment.

Fixed deposit is one of the safest ways to save money as it offers security against inflation and other risks associated with savings accounts. These are short term investments which can be redeemed after completion of maturity period with accrued interest being paid over the holding period of the deposit.

The interest rate may vary from bank to bank but generally it remains constant throughout the tenure of investment except for premature withdrawal in between due dates or before maturity date which may attract penalty charges as well as reduce interest rate for future deposits invested in same bank/institution

RBL Bank Fixed Deposit Schemes To Invest In India

RBL Bank offers a high interest rate Fixed Deposit Scheme which is a low-risk investment option. The bank has been in the market for over a century now and has gathered immense trust among its customers. The bank offers different types of FDs, including fixed deposit schemes, recurring deposit schemes and many more.

RBL Bank Fixed Deposit Scheme Details

Let’s have a look at the details of some of the best fixed deposit schemes offered by RBL Bank:

Fixed Deposit Scheme Details

1) RBL Bank Regular FD Scheme: This is one of the most popular FD schemes offered by R2B. With this scheme, you can invest any amount between Rs 1 lakh and Rs 1 crore for a tenure period between 3 months to 7 years. You can also opt for monthly SIP option with this scheme. The maximum interest rate that can be earned on this scheme is 7% per annum (pa).

2) RBL Bank Zero Balance FD Scheme: This is another good FD scheme offered by 2B bank where you can invest any amount between Rs 25 lakhs to Rs 1 crore for a tenure period between 1 month to 5 years (1-month SIP option available). The maximum

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Here are a few things you should be aware of before choosing to invest in fixed deposits and decide which bank is best for FDs.

1.Lock-in period: Fixed deposits come with different lock-in periods, ranging from 6 months to 5 years. The longer the lock-in period, the higher the interest rate will be on offer. However, investors need to keep in mind that they cannot withdraw their money before the maturity date without paying penalty charges. The lock-in period is determined by the bank offering the FD and can vary from one bank to another

1. Interest rates: Interest rates on fixed deposits vary from bank to bank and also depend on the tenure of your deposit. For example, if you invest ₹1 lakh for 3 years, your interest rate will be higher than if you invest ₹1 lakh for 5 years or 10 years. The highest interest rates are usually offered on smaller amounts with shorter tenures. Banks offer different interest rates depending on their own policy and competition among banks in an area, so it pays to shop around before picking a bank and product.

3.Bank reputation: A bank’s reputation plays an important role when it comes to investing in fixed deposits because these investments are secured by government securities that are issued by public sector banks or private sector banks and cooperative banks.

4. Tenure: You can choose different tenure periods when investing in FDs — short-term (up to 1 year), medium-term (1–5 years) and long-term (5–10 years). The maximum amount that you can deposit for each tenure differs from bank to bank but may range from ₹50,000–.

5. Flexibility – Fixed deposits give you the flexibility to withdraw your money as soon as the lock-in period ends without any penalties. However, once you withdraw your money after the expiry of the lock-in period (usually seven days), you will not be able to make fresh investments in that particular branch until six months have passed from the date of withdrawal (and this includes all other branches as well).

6. Safety and security – The interest earned on FDs is fully tax free under Section 80C of the Income Tax Act 1961 and thus makes it an ideal investment avenue for tax savings purposes too