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How to find out Best Fixed Deposit

by Manish Chauhan · 65 comments

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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{ 57 comments… read them below or add one }

1 KSK June 23, 2009 at 10:14 pm

If some one is looking for mediclaim policy without medical test upto the age of 55 and wish to have one policy on regular basis upto the age of 65??? visit

http://cosmicmetlife.blogspot.com

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2 RD June 24, 2009 at 6:17 am

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.

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3 Manish Chauhan June 24, 2009 at 6:44 am

@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

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4 Vibhav June 25, 2009 at 12:40 am

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

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5 Manish Chauhan June 25, 2009 at 12:54 pm

@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

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6 Naresh August 11, 2009 at 6:24 am

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

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7 K N Shivananja February 21, 2011 at 7:23 am

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

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8 K N Shivananja July 21, 2011 at 6:13 am

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.

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9 Manish Chauhan July 22, 2011 at 1:54 pm

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

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10 Manish Chauhan August 11, 2009 at 7:49 am

@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

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11 George December 28, 2009 at 11:06 am

What is the best suggestion for an NRI to invest 5L in India. The NRE rates are dismal.

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12 manish December 28, 2009 at 1:16 pm

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

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13 jimmyjose2980 April 15, 2014 at 10:56 am

Hi Manish,

I am an NRE who aspires to return in 5 years from now.

An investment in FD with BOI for 1 year yields 9.25% returns, whereas, for 3 years, it is 9.05%. So, their comparison over a period of 3 years shows a slight difference in returns, wherein, going for repeated 1 year investment seems beneficial.

Please advise if my understanding is incorrect.

Would FD promise the highest returns in comparison to other means of short-term and long-term investments, given that there is NO TAX whatsoever, wherein, the FD is opened With BOI, where, I have an NRE A/c?

Thanks,
Jimmy

=-=-=

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14 Manish Chauhan April 21, 2014 at 3:13 pm

In 3 yrs FD ,you lock in 9.05% return , it wont change later, but if you choose 1 yr now, you will get 9.25% , but what will you do if interest rate is changed later ? Its all about risk and return … and uncertainty

FD has tax on the interest part

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15 Jimmy Jose May 31, 2014 at 3:08 am

Oh yes, the interest can be come down as well!

Thanks for the response Manish!

And, I was not aware that interests are taxable for NRIs.

Thanks again!

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16 Anand Bhairat January 12, 2010 at 12:04 pm

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.

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17 manish January 12, 2010 at 2:01 pm

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

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18 rajeev Juneja January 23, 2010 at 7:43 am

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

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19 Manish Chauhan April 4, 2010 at 10:22 am

done

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20 DHIRENDRA December 7, 2010 at 9:10 am

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

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21 K N Shivananja February 21, 2011 at 7:26 am

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.

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22 Vijayalaxmi Bahirat December 8, 2010 at 2:00 pm

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

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23 Ashish January 9, 2011 at 4:12 pm

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

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24 Manish Chauhan January 12, 2011 at 7:49 pm

Ashish

thanks for the link . I will have a look at it !

Manish

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25 Somnath Naha July 20, 2011 at 8:47 am

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.

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26 Manish Chauhan July 22, 2011 at 2:14 pm

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

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27 Anand Bhairat July 21, 2011 at 11:46 am

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.

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!

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28 Manish Chauhan July 22, 2011 at 1:52 pm

Anand

thanks for your inputs :)

Manish

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29 Rajveer July 28, 2011 at 4:56 pm

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.

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30 Manish Chauhan July 29, 2011 at 11:38 am

Rajveer

You can look at Monthly income plans of mutual funds : http://www.jagoinvestor.com/2011/01/monthly-income-plans.html

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31 girish October 3, 2011 at 7:37 pm

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

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32 Manish Chauhan October 4, 2011 at 10:25 am

Girish

FD rates change every month or so ,.. please ask this question on our forum

manish

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33 ega kamal May 10, 2012 at 2:56 pm

how to set fd rates. in the banks

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34 Manish Chauhan May 11, 2012 at 10:25 am

can you ask your question in different way ?

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35 ega kamal May 10, 2012 at 2:59 pm

how to calculate fixed deposits rats based on the time.
how to benefited investor with fixed deposits.

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36 Manish Chauhan May 11, 2012 at 10:25 am

You dont need to calculate the rates , its already given to you by banks

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37 Debasis Jana July 9, 2012 at 6:01 pm

Dear Sir,
I have Rs.100000,I want to FD.I don’t know about FD,So can you sugest me?

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38 Manish Chauhan July 9, 2012 at 6:26 pm

You can open the FD at same bank where your account is there !

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39 krish July 12, 2012 at 4:37 pm

Hi Manish chauhan,

I have some around 8 to 10lacs with me,I want to know for a long term basis in which scheme I should put it into,I am already paying 1.10 lakhs every year for insurance,so I dont want to go for any more insurance.shall I go for PPF as there I do not have to pay any tax or shall I go for FD in a public sector bank like SBI,but after reading the above posts I dont think it would be idea for a 15 year tenure.I am also not a kind of guy to invest in mutual funds and share markets as it has its own risk.
If you are aware about sahara india ,there is a scheme called U-golden where if you are paying once 16000 ,after 15years you would be getting 1lakh 4 thousand,I dont think if you will invest any other things will give you this much return.
Please suggest me ASAP as I am spending my money some way or other :-) so my purse is going blank.

Thanks in advance

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40 Manish Chauhan July 13, 2012 at 10:58 am

There are some issues .

You first need to understand why you dont want to go with mutual funds . You should read 3rd chapter of my book Jagoinvestor. Next thing is do you know much returns does that SAHARA product generate for you ?

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41 krish July 13, 2012 at 11:11 am

Manish,

Sahara gives Bond paper which clearly mentions that,if we are paying 16k once ,after 15 years it will be 1lakh 4k.its a fixed deposit only.but can we believe the credentials of sahara thats the question
2nd thing ,regarding mutual fund you have to be in update and check the status in every month and everytime,even though I am available in internet all the time but I am no good in finance section as i was never interested to that part.thats y not interested for mutual fund or share market.but do you mean to say mutual fund will give me the maximum return.

Thanks.

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42 Manish Chauhan July 14, 2012 at 4:48 pm

Krish

What is the name of that scheme ? Because it turns out to be 13%+ which is not possible logically, there is some catch for sure !

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43 krish July 14, 2012 at 4:53 pm

Hi manish,

it is sahara U golden scheme..awaiting for ur reply…anyothers in forum please reply with ur expertise

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44 Manish Chauhan July 14, 2012 at 4:57 pm

Online I can read that it gives 5 times return in 15 yrs , not sure it shoudl give you 80k after 15 yrs of 104k , better start a thread on our forum http://www.jagoinvestor.com/forum/

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45 krish July 14, 2012 at 5:12 pm

ca u plz start with appropriate content,obviously u will get more reply than my post

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46 Chetan Ambi May 17, 2013 at 7:38 pm

http://www.way2goals.com is a nice website.. tnx for the info..

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47 Manish Chauhan May 18, 2013 at 12:05 pm

Thanks Chetan :)

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48 RAMKISH JETH June 29, 2013 at 11:56 pm

Dear Manish,
from the date I come across to locate your site, I am very much keen to review the various questions put forward for your comments and your very informative response to them. God Bless you doing such humanitarian job for our Indian Community in particular. Hats up for you.
My question is that on one of your site I read the following article:
Quote
In case of a joint FD in either or survivor mode if any of the owners passes away, then the survivor gets the FD only on maturity. He or she can’t make a premature withdrawal.”???
Circular from RBI stating the same(reported shown by the respective Bank)
This was a surprise for us, but the manager also showed us the circular from RBI stating the same.
Unquote:
I shall appreciate if you can assist me to get copy of the circular, and authentication of it, or email contact details from we can aquire that.
Thanks and best regards.

Ramkish Jeth

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49 Manish Chauhan July 1, 2013 at 2:08 pm

I wont be able to get you the physical copy ,but thats the rule !

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50 satheesh reddy muthyala August 7, 2013 at 9:35 am

Dear manish
my father has fixed deposit in sbi bank which has a maturity date 5-12-2013.Till now my father didnot claimed the money.Does the bank give interest after the maturity date?

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51 satheesh reddy muthyala August 7, 2013 at 9:36 am

sorry the maturity date is 5-12-2008

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52 Manish Chauhan August 9, 2013 at 10:12 am

No they wont. They should not give it ! . Why do you expect them to give you interest after maturity ? Its your responsibility to tell them whats next step !

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53 Coziie September 2, 2013 at 2:13 pm

I’ve been looking for high return Fixed Deposits in general category and populated the information over here: http://coziie.com/fixed-deposits/banks-paying-high-interest-rates-india.

One thing I noticed is, all the popular banks(SBI, ICICI, HDFC, Axis) pay less for the fixed deposits compared to less popular banks like Andhra Bank, DCB.

So if we want maximum returns on our fixed deposits, then we have to open accounts with small banks. But how easy is to operate with these banks? Are they providing good customer service? These are all the questions one needs to ask before opening a fixed deposit. At least to me, high interest rate is not the only criteria!

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54 Manish Chauhan September 3, 2013 at 12:39 pm

yes , lot of small banks give good service , Just that their network is small does not mean that they will give bad returns.

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55 Gopinath September 7, 2013 at 11:22 pm

The best fixed deposits in terms of returns are from public sector banks, especially the banks that are not so popular like DCB, Andhra Bank & PNB. These banks offer high interest rates compared to ICICI, SBI, Axis & HDFC.

The compilation over here http://www.coziie.com/fixed-deposits/banks-paying-high-interest-rates-india fixed deposits lists all the fixed deposits that offer high interest rates in India

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56 Manish Chauhan September 18, 2013 at 9:16 am

Thanks for sharing that link !

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57 Goban August 26, 2014 at 12:30 am

I would like to know your recommendation-

1) If I have 30 – 40 lakhs where can I invest to get the best returns within 3 years.

2) Also after retirement, where should we invest our indemnity so we can get regular monthly income which is safe as well. Or is it advisable to put in FD and get monthly interest?

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