Latest Bank Fixed Deposit Interest Rates 2016

What is the current bank fixed deposit interest rates 2016? If you don’t know then this post will help you to find out the best FD scheme with highest return. I am also going to share some facts about fixed deposit schemes in this article so that one can have enough information before investing.

What is a FD or Fixed Deposit scheme

Fixed deposit schemes are one of the best debt investment option. Not only that, if you are planning to invest for short term for guaranteed return, then bank FDs are best way to invest money in India. Generally banks are investing your money to security bonds, Govt assets so that the return can be guaranteed & risk free.

But the return will not be much high. Although you can see a FD might offer 8% interest rate, but this is not the real return. If you don’t know how to calculate the real return of FD scheme, then let me tell you how much a bank FD can return in real term.

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Real Return = FD Interest rate – Inflation – Income tax.

Bank FDs also attract TDS or tax deducted at source on monthly basis. In case your earning is not taxable, then you have to submit either 15G or 15H form to stop the TDS deduction. But inflation will be applied and considering all of these factors a FD may return 1-2% max in real time.

Latest bank fixed deposit interest rates in India 2016

Considering an investment of Rs 10,000 for selected tenure in Bank Fixed deposit. You will find out how much the return will be after the time mentioned in the last column.

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Top 5 FDs for 1 year block

Bank Name Interest Rate Final Return
RBL Bank 8.00 10,824
IDFC Bank 7.75 10,798
DCB Bank 7.70 10,793
Lakshmi Vilas Bank 7.70 10,793
City Union Bank 7.70 10,793

Top 5 FDs for 2 year block

Bank Name Interest Rate Final Return
RBL Bank 8.25 11,774
DCB Bank 7.90 11,694
IDFC Bank 7.75 11,659
Lakshmi Vilas Bank 7.50 11,602
South Indian Bank 7.50 11,602

Top 5 FDs for 3 year block

Bank Name Interest Rate Final Return
RBL Bank 8.00 12,682
DCB Bank 7.90 12,645
Federal Bank 7.60 12,534
Lakshmi Vilas Bank 7.50 12,497
UCO Bank 7.50 12,497

Top 5 FDs for 5 year block

Bank Name Interest Rate Final Return
RBL Bank 8.00 14,859
DCB Bank 7.90 14,787
IDFC Bank 7.50 14,499
State Bank of Mysore 7.45 14,464
Lakshmi Vilas Bank 7.40 14,428

You can easily verify the data by directly visiting the bank website, as the rate of interest is a variable and subject to change as per terms of banks. So better to reply on accurate data from banks only.

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In case you are ready to take more risk, then corporate FD schemes are quite better as they offer good return comparatively. But again, you should have enough knowledge about such deposit schemes and how to analyse them. Otherwise a Bank FD or recurring deposit is good for a short term investment horizon like 1 – 2 year max. At least better to keep the money idle in savings account.

So, in which FDs you have invested your money and how much return you got so far? What are the bank FD alternatives according to you? Would you like to share your experience of any suggestions to make this article worthy for the readers.

Latest Bank Fixed Deposit Interest Rates 2016
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  1. RafaelVecy
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