Deposits – Interest Rate- Which should be selected for FD

POSTED BY Prashant ON December 28, 2010 11:15 am ONE COMMENT

My Question is regarding Interest on FD’s . Can you let me know which type of interest will give me best returns .

For HDFC FD i found out the following interest type . Can somebody help me as to which is the best interest type to be selected which will give me more returns. I am planning to invest around 50k.

Annual Income Plan
Monthly Income Plan
Non-Cumulative – Quarterly Option
Non-Cumulative – Half Yearly Option
Cumulative Option

http://www.hdfc.com/deposits/interest-rates.asp

 

One reply on this article “Deposits – Interest Rate- Which should be selected for FD”

  1. Amit says:

    “Cumulative Option” should give you maximum returns at the end of the term. Its because whatever interest is earned is added to your principal (I think on quarterly basis) and your interest for next quarter would be based on this increased principal amount. Basically, your interest anount is also re-invested. This keeps on adding till the end of the FD term. Its called cumulative as your interest is added to your prinicipal every time.

    Other Plans will give you fixed interest on your FD at regular intervals.

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