I want to invest Rs 1,00,000 in a Fixed Deposit for 2 yrs in a public Sector Bank. I come in 30.9% Tax bracket. Which is the best Bank for me that will provide the maximum return? How do you answer this question? I also wan to get all the information on the Bank in India at a single place; Which is the website I should checkout? In this short article, we will see a very useful website which gives you all the information on Fixed Deposits and Banks in India.
How to find out Best Fixed Deposit
Have a look at http://www.way2goals.com/Project2/chooseBank.html. This website gives excellent information on Fixed Deposits based on different parameters given by you.
So if you want to invest Rs 1,00,000 for 2 yrs and 3 months in a Public Sector Bank and you belong to 30.9% Bracket, it will filter out the the list of best Banks that suit your needs and provides best return. It will also tell you what will be your final profit after paying tax and what will be your gain after factoring in Inflation (based on your expectation of inflation percentage).
See the following screenshot for the above figures. (click to enlarge)
It gives tells you that the best Fixed Deposit will be from “State Bank of Patiala” which offers 8% interest . It gives other information like
- Maturity amount
- Interest Earned
- Interest After Tax
- Gain After Inflation
Currently The information on the website is updated twice a week.
Information about a particular Bank
If you go to http://www.way2goals.com/Project2/interestRatesByBank.html#. You can get all the basic information about a particular Bank at one place . It will give you information about
- Website of the Bank
- Contact
- Interest Rates information for Different Tenures
Also checkout this link to learn some basic stuff . Way2Goals Software India Pvt Ltd is the company behind http://www.way2goals.com/ .
Conclusion
This is an excellent tool dedicated to Banking Information especially information on Fixed Deposits. Way2Goals is one stop destination for any information on Banking Sector. There is scope of adding lots of things, but I believe it will come with time as any other thing in Life. Great tool!!
If you come up with tools like these please share it with others here 
.
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{ 29 comments… read them below or add one }
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I checked Way2Goals.com site and it has useful information painstakingly compiled and formatted in standard format across diverse private and public sector banks. As each bank publishes information in its own way whenever it wants, compiling and normalizing this centrally involves lots of effort and the work done by Way2Goals.com is really commendable.
@RD
Yes, The website gives the information at one place and in same format for all , which is the best thing. I wish same to be done for each and every thing .
Manish
Hey Manish,
http://www.ratekhoj.com/ is also another wonderful website.. helps to get the rates on not only term deposits, but also on other instruments..
Thanks and Regards,
-Vibhav
@vaibhav
Ohh great !! , Thanks for sharing this , may be I will put up something about it soon .
Thanks again . Keep providing nice links like these when you come up with them
Manish
i have to make a FD for my daughter (2 years) for 16 years only in a nationalised bank. please advise the best bank who is having a highest interst.
rgrds
Naresh
nkjhamnani@gmail.com
Instead of keeping FD she is 16 years please keep in Insurance sector for 5 years. Its covers for you an insurance as well as good interest in putting Share market linked insurance
Sir,
Instead of putting in the FD in Bank, I suggest to you invest in insurance sector which takes cares of your life risk as well bright future for your daughter, Which much more yield at 16 years of your child. In case if you are interested give your child date of birth as well as your date of birth, I will send you the proposal. Before putting into Bank Deposit you can compare & you can decide. In bank you may get maximum of 10.5% not more than that because of RBI guide lines minus TDS. In insurance what were the money you have put is also exempted and received is also exempted from Income tax.
Can you show the returns of that policy which you are talking about , Please show the working also on how you get good returns .
Manish
@Naresh
I have 2 things for you
1. The best best doesnt matter much when the duration is 16 yrs . The difference between there interest wont be too much , so you can go with any of top 5 i would say . Put your requirement at http://www.way2goals.com/Project2/chooseBank.html and check .
2. Now comes the important part .
I understand that your decision of putting money in Fixes deposits for 16 yrs , is mainly becuase of your no risk appetite and may be you are fearful loosing it in mutual funds or any other equity products , but you have to understand that
- FD returns are almost nil after you factor in the tax and inflation .
- Equity is extremelly efficient for long term goals like you have for 16 yrs. there is no other thing than Equity which i would suggest .
You should atleast put money in PPF account , atleast there wont be any tax on maturity .
You can divide your money in PPF and SIP in 3-4 equity mutual funds .
Its its long term , its Equity .
Manish
What is the best suggestion for an NRI to invest 5L in India. The NRE rates are dismal.
George
anything which is fixed return thing would pay less to NRI . the best thing would be real estate and Equity for long term for NRI .
Manish
I could not agree more with Manish.. Fixed Deposits are good only for short and medium term.
It is difficult to beat inflation and grow real value of you money.
It is important to understand various alternative asset classes and their suitability, keeping in mind the liquidity, safety in mind while investing.
Yes . But for the support of FD . Its one of the best tool to invest your money in short term . So if one has a critical financial goal within 1-3 yrs . FD can be a good , non risky tool
Manish
Dear Sir
Its always a treat reading your writings. May I be allowed to make a suggestion please. On your website , readfing an article becomes difficult because of widgets of t,f,sms etc . Please put them opn the RHS of the page where contents are lighter on allow flexibility of shifting them.
Thanks and lots of regards
done
sir
i have 100000 rs. please help me how i fixed with high rate with respected bank for 3 to 9 years as per your desisation
Please put into insurance sector. It covers your life as well as you get better than FD. It is unit linked insurance. Now it is auto balancing also.
As of Dec 8th 2010, Syndicate bank, karnataka bank, Tamilnadu Mecantile bank are giving 8.50% for FD of 3 years and above. As interest rates are subject to change frequently, please visit http://www.way2goals.com/Project2/chooseBank.html for the latest FD rates. FD rates are available on SMS also.
FDAll 3 years
sent to 92200 92200
will return the best fixed Deposits for 3 years across Public sector, Private and Foreign Banks…
For seniors rates type Fdallsnr and send it to 92200 92200
I guess another factor to consider with FD is Penalty on Pre-mature withdrawl. There are times when you might need your funds immediately. Usually Banks do not inform about pre-mature withdrawl penalty openly.
In case your FD is kind of emergency fund then we should look at this factor as well. you can find this data at http://www.ratekhoj.com easily
Ashish
thanks for the link . I will have a look at it !
Manish
Hello I would want to keep Rs. 40 lakhs in a Fixed Deposit with AXIS Bank. My idea is to get a solid yearly interest to cover the educational expenses of my children. I am an NRI hence I will have to pay tax (I dont mind, I am looking for a safe investment at this point of time). Can you please suggest me which scheme of FD (time) I should invest this money so that I can get a yearly benefit close to 3 lakhs. I would need at least US$ 6000 per year to run the school expenses of my children and would want to use the capital to support their education. Any help would really be appreciated. Many thanks. regards, Somnath.
Somnath
Considering that you dont have any other income source in India , all you need is 8% interest rate yearly from FD , that would give 3.2 lacs as income , you can pay max 20k as tax and be left with 3 lacs per year . So you can choose Axis bank or any other bank . Any tenure more than 3 yrs should be good
Manish
My suggestion is it is not a good idea to put all your money in one basket.
Jagoinvestor has some very good articles on asset allocation.
Unlike in US and western countries where the money up to 1 lakh dollars is insured, your money saved in DICGC insured Indian Banks is insured only upto one lakh of rupees per bank per account . Keeping in mind the the risk involved, it may be worthwhile to open accounts in your name, your spouse’s name to increase the risk coverage. It will increase your paper work, but I think it is worth the extra work.
Please read the article below.
http://www.way2goals.com/FinEdu.html
There are other banks which are giving better interest rates than Axis bank. Look at best fixed deposits http://www.way2goals.com/Project2/chooseBank.html . For e.g. instead of Axis bank if you put in Laxmi Vilas Bank or Karnataka bank for 1 year Fd, you will make app. more than Rs. 20000.
Most people tend to ignore the impact of inflation on their projected expenses. Two expenses which have surpassed inflation are medical and educational expenses. Please look at the link below to see how you need to save for your children’s education.
https://www.fidelity.co.in/investing_insights/saving_for_college_calc.html
I think your post tax returns in FD after adjusting for Taxes and more importantly for inflation will be close to zero.
You may wish to read this article, which says in the past 5 years that average post tax returns on Fixed Deposits are 7.5% vs nearly 17% if one invests in SIP (Systematic investment plan).
http://www.livemint.com/2011/07/19204540/Meet-the-SIPers-join-them-now.html?atype=tp
You may wish to consider spreading your investments across different asset classes such as Fixed Income(FD , Bonds) , Gold, Equity Mutual Funds, Real Estate etc.
http://www.way2goals.com/AssetAllocation.html
This is my opinion, but, you should understand various financial products before making any investment/savings.
Happy saving/investing.. All the best!
Anand
thanks for your inputs
Manish
hi,
i am businessman and in my early 50s. i want to decrease work load as i am getting old. i have about 30-50 lac. saving here and there/gold/cash with me which i want to invest for long term i dont mind investing it for 5-10 years so that i can get regular income which take some of work load off. i was considering FDs but as people in comments of this post are saying for longer term FDs are not so effective can you please advise me where i should invest for regular income plus where my actual money is safe too.
I dont have much knowledge of Mutual Funds/stock exchange as i always considered them having big market risk of losing all initial investment i maybe wrong.
I would really appreciate reply. Plus this site is very very helpful.
Rajveer
You can look at Monthly income plans of mutual funds : http://www.jagoinvestor.com/2011/01/monthly-income-plans.html
Dear sir / madam ,
I am looking for the FD for 10 years with 11.5 % on cumulative . if any one knows pls rewrite to me thanks
Girish
FD rates change every month or so ,.. please ask this question on our forum
manish