• Source:JND
Add as a preferred

Smart FD Investment Strategies 2025: Fixed deposits (FDs) are one of the safest investment options for those who want guaranteed returns without any risk. When you invest in an FD, you park a lump sum amount in the bank at a fixed interest rate for a fixed period. On maturity, you get the interest earned as well as your initial investment.

FDs also offer you flexibility in the way you receive interest payments - you can opt for monthly, quarterly, half-yearly or yearly payouts. If you don't need immediate access to funds, you can let the interest compound for higher returns.

How to maximize returns on FDs?

Compare FD interest rates

Different banks and financial institutions offer different interest rates. Non-banking financial companies (NBFCs) and small finance banks generally offer higher rates than commercial banks. Additionally, senior citizens often enjoy additional interest benefits. To increase your income, choose a bank that offers the most competitive FD rates and also consider factors such as reliability and service conditions.

Choose the right FD tenure

FD tenures can range from 7 days to 10 years. Choose a tenure that suits your financial objectives. Short-term FDs offer quick access to funds, while long-term FDs offer better compounding benefits.

Choose the interest payout frequency

Determine whether you prefer regular interest payments or would prefer to reinvest for increased returns. If you need a steady income, choose monthly or quarterly interest payments. Otherwise, let the interest compound to a larger amount on maturity.

Also Read: Stock Market Today: Sensex Soars Over 900 Points, Nifty Breaks 10 Days Losing Streak; What's Driving The Rally

Deposit method

You can set up an FD online through internet banking or by visiting a bank branch. Most banks offer a straightforward digital process to open and manage your FD.

Top Banks Offering Best FD Interest Rates

Here are some of the best FD rates offered by leading banks

HDFC Bank - 7.25% for a tenure of 18-21 months; Senior Citizens - 7.77%

ICICI Bank - 7.25% for a tenure of 15-18 months; Senior Citizens - 7.85%

Kotak Mahindra Bank - 7.4% for a tenure of 390-391 days; Senior Citizens - 7.9%

Bank of Baroda - 7.15% for a tenure of 2-3 years; Senior Citizens - 7.65%

Union Bank of India - 7.3% for a tenure of 456 days; Senior Citizens - 7.8%

Federal Bank - 7.5% for a tenure of 444 days; Senior Citizens - 8.0%

Also Read: Tax Saving Alert! These Smart Investment Plans Can Save You Up To Rs 1.5 Lakh; Invest Before March 31