Wednesday, 28 May 2014

Fixed Deposit Schemes with Higher Returns

Fixed deposits have been one of the most widely used investment vehicles in India for a long time. From the most conservative investor to the high risk taking one, everyone has invested some funds in a fixed deposit scheme for a rainy day. The secured nature of the investment and higher interest rates than savings bank account make fixed deposits an investment vehicle for the masses.

In recent years however fixed deposit accounts have taken a small hit as various state owned agencies introduced tax free bonds. Such bonds offered assured returns at a better interest rate than conservative fixed deposits making them quite popular with the masses. Banks are also now starting to fine tune their fixed deposit accounts offering better rate of interest for various schemes with different tenure periods. Let us take a look at some of the fixed deposit schemes offering higher returns.

FD Interest Rate
Fixed Deposit

Special Maturity Date Fixed Deposit Schemes:

The growing competition in the fixed deposits market as well as an increase in the number of safe investment avenues, banks and non banking financial companies have introduced various fixed deposit schemes offering a higher rate of interest. These schemes often have a unique maturity date 444 days, 555 days or even 1111 days. All such fixed deposit schemes work and operate like normal fixed deposit schemes but with a better rate of interest.  Both public sector banks and private banks have received good feedback for such specially designed fixed deposit tenure schemes in the past. Punjab National Bank for example offers an interest rate of 8.75% for fixed deposits over 1 year and up to five years while offering a 9% rate of interest for a 4000 day deposit.

Senior Citizen Fixed Deposit Schemes:

All public sector and private banks have a special rate of interest for senior citizen fixed deposit accounts. The age limit to be eligible for senior citizen rate of interest for fixed deposit accounts is 60 years for men and 58 years for women. Normal citizens can also considering investing in fixed deposit accounts in the name of their parents or elders to attract higher and more lucrative interest rates.

Company Fixed Deposit Schemes:
Company fixed deposits are a better way to increase the overall rate of interest compared to traditional bank fixed deposits. While company fixed deposits offer a higher interest rate, they are a high risk investment due to their unsecured nature. With high risk come high rewards and users can consider putting some part of their overall investment in company fixed deposits.

Post Office Fixed Deposit Schemes:
Just like public and private banks, post offices all across the country also offer fixed deposit investment schemes. The government has recently increased the rate of interest for all fixed deposits under the post office making it lucrative for the semi urban and rural citizen. Interest rates on fixed deposit schemes offered by post offices have been increased as much as 0.2 per cent compared to bank fixed deposits.


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