Fixed Deposit Interest Rates Charged On Six Months Fixed Deposit The fixed deposit is an investment tool that can fetch you higher interest amounts given by the banks and NBFCs compared to general savings accounts.
Though it completely depends on the investors if they want to open a separate bank or not, at the end of tenure, the amount of investment automatically transfers to your savings account.
It is wiser to invest your hard-earned extra money on FD than meaninglessly spending them on unnecessary things. Through investing your money on fixed deposits, you not only develop a habit of saving your extra cash but also help you in growing your investments further through fixed deposit interest rates.
The fixed deposits are rather easy to handle as under this scheme, you have to deposit a certain amount of money for a particular period for which the bank will offer you interest. Though the fixed deposit interest rates are dependent on tenure and the amount of money, you are willing to invest.
The fixed deposit interest rates are always calculated based on the amount of money you have deposited on FD till the maturity date.
Things You Need To Know About Fixed Deposit Interest Rates
Closure Within A Predetermined Time
The closure of the fixed deposit account during the period of maturity. While closing your fixed deposit account at the end of a predetermined time, the bank gives back the amount you have an interest in along with interest accumulated on them through the tenure.
Withdrawal Of Certain Sum Of Money
The partial withdrawal facilities ensure the liquidity of your investment, thus you can withdraw a certain amount of your investment from a fixed deposit. So with this facility, you can withdraw money during sudden financial emergencies or transfer the deposit to banks that offer higher fixed deposit interest rates.
Preclosure Of Your FD Account
The Preclosure of fixed deposit means you are withdrawing the whole investment before the maturity date. Though the banks do not provide mostly Preclosure facilities in case of fixed deposit, few banks offer you such facilities against a certain amount of penalty.
The Interest Rates On Fixed Deposit For Senior Citizens
Most senior citizens prefer investing their life savings on safe and secure investment tools like fixed deposits. The prime reason behind such preference is that fixed deposits offer the highest interest rate to senior citizens. Most banks and financial institutions offer attractive interest packages to customers who are above 60 years of age.
The benefits the senior citizens get from investing in fixed deposits are –
- While investing the money on a fixed deposit, your age must be 60 years or above to avail benefit of senior citizens FD Account.
- The investment period on Fixed deposit offers to senior citizens can range between 7days to 10 years in India.
- The highest fixed deposit interest rate offered to the senior citizens can be between 0.25% to 0.75%.
- Another big advantage you can get as a senior citizen is to apply for a loan against a fixed deposit.
- If you withdraw money from a fixed deposit, then the bank will charge a minimum penalty depending on the amount you withdraw.
Calculation Of Fixed Deposits
Nowadays, there are many fixed deposit calculators which are available online. These calculators are user-friendly and easy to understand. All you have to do is type a fixed deposit interest rate calculator on your Google search, and it will show you various options within a few seconds. Through using these tools, you can easily determine the highest interest rate you can get on investment on a fixed deposit. If you don’t trust online tools, then you can calculate interest rate through using the following formula –
A= P× (1+r/n)^n*t
P= Principal amount
A= Annual amount
r = Rate of Interest
n = Frequency of compounding
t = Tenure
I = Earned Interest
Components Fixed Deposits Interest Calculators Use To Determine Highest Fixed Deposit Rate You Can Earn –
The deposited amount refers to the principal amount of money you are willing to spend on a fixed deposit. These amounts you to spend only once, and you also have the freedom to choose the investment as per your choice and capacity.
Term Of Deposit
The tenure or duration of investment on a fixed deposit is known as the term of Deposit. And these terms can be between 7 days to 10 years in case of a fixed deposit.
The fixed deposit interest rate helps you earn by investing money for a certain period.
After filling up all the above criteria, you can see the highest Interest rate you can get on interest rate calculators. Apart from using fixed deposit rate Calculators, you should compare other bank fixed rates before applying.