Top Fixed Deposit Schemes in India: 2014

Investing in Different Fixed Deposits

Fixed Deposits

Similar to oxygen, money is one of the most essential requirements that any person requires in order to survive. Therefore, we work in jobs, in order to earn money and we also simultaneously make investments in different financial instruments in the stock market. From mutual funds, debentures, bonds, real estate, commodities such as gold or silver, etc. they are suitable for meeting both short- long term financial objectives.

However, we all want long-term security and one of the best methods by which people can receive lucrative returns in the long run is by investing in different fixed deposits. These plans are plans wherein many people are most likely to invest their money. Also known as term deposits, the returns are 'pre-determined', along with minimal amounts of risks and thus this option is also considered to be one of the safest investment options.

However, the fixed deposit interest rates are known to differ from one bank to the other and according to the tenure (duration) of the fixed deposit. For example, some of the different tenures could be 6 months-1 year, 1-2 years, 2-3 years, 3-5 years and above 5 years.

HDFC Bank is one of the private sector banks’ that is known for offering a standard 8.75% for all tenures, excepting for those over five years where the interest rate drops to 8.25%. Similarly, State Bank of India has been known to offer a 7.50% interest rate for 6 months-1 year, while it remains constant at 9% for all other tenures. Public sector banks are well-known for offering higher rates of interest than private banks.

The top fixed deposit schemes in India include:

  • Corporate or company fixed deposit schemes: These generally are known to offer higher interest rates than banks. They may vary from 9 to 16%. They are held by those investors who are generally reluctant in investing in the stock market.
  • Mahindra and Mahindra Financial Services Limited: One of the leading NBFC’s, this company offers both cumulative and non-cumulative options. Interest rates are as high as 9% p.a. for non-cumulative schemes and 9.25% for cumulative schemes. These rates differ according to the tenures.
  • Plethico Pharmaceuticals: A leading global healthcare and pharmaceutical company, Plethico Pharmaceuticals offer 11% interest rate for 12 months for the minimum deposit (INR 25,000) for both cumulative and non-cumulative options. The rates differ, though according to the tenures.
  • Bank fixed deposit schemes: These are offered by banks or even non-banking financial companies (NBFC's). ICICI Bank offers an interest rate of 8.50% for the minimum amount, Vijaya Bank which offers a huge interest rate of 9.1% p.a. for its short term fixed deposits.
  • HUDCO: HUDCO, also known as Housing and Urban Development Corporation Limited is a premier techno-financing company. Although the rates will differ according to the tenures, both cumulative and non-cumulative options start off with 9.15% interest rate for one year.