Detail information about Interest Rate On FD for 2 years?

Its popularity can be gauged from the fact that it is the most preferred option for senior citizens to invest their life savings and generate a stable income.

Apart from safety and guaranteed returns, investors enjoy a lot of flexibility by investing in fixed deposits, which is not possible in other equity-related securities. An investor can select the tenure of FD rang Fixed deposits are one of the most common and preferred sources of investing for millions of Indians due to their guarantee of safety and returns to investors.
Its popularity can be gauged from the fact that it is the most preferred option for senior citizens to invest their life savings and generate a stable income.

Apart from safety and guaranteed returns, investors enjoy a lot of flexibility by investing in fixed deposit (FD), which is not possible in other equity-related securities. An investor can select the tenure of FD ranging between a minimum 7 days to a maximum of 10 years, can raise a loan against the deposit, and can partially or fully withdraw before the end of FD's tenure.

An FD account can be easily opened by approaching a bank and doesn't require one to go through a lengthy documentation process. Other benefits include:

Tax Benefits
An investor is allowed tax exemption on the interest income of up to Rs. 40,000 (Rs. 50,000 for senior citizens) in a financial year. And, if your total taxable income (including interest income) is less than Rs. 2.5 lakh (Rs. 3 lakh for senior citizens), you are fully exempt from tax.

Automatic Renewals
At maturity, if there is no specific instruction from the FD holder, the bank automatically renews the term of the FD at prevailing interest rates. The tenure also remains the same and new maturity date is given.

Maximising Returns
Over the years, the evolution of digital technology has helped investors to churn out the maximum returns from fixed deposits through efficient planning. One such product that is helping the investors out is FD rate calculator, which helps to calculate the total returns at maturity and evaluate different scenarios. Using an FD rate calculator, you can calculate the total interest income from both cumulative and non-cumulative fixed deposits. It allows you to make a wise choice.

Let's look at 2-years fixed deposit rates offered by different banks, and other financial institutes.

Public Sector Banks

Private Sector Banks

Other Financial Institutes

Note: Interest Rates as on 30th Sept 2019

Though fixed deposits are considered to be the safest investment products, you should always do your research and keep a tab on where you are investing your hard-earned money.