Are you a risk taker? If the answer in 'No', then this the right time to invest in the Fixed Deposit. The main objective of investing in the fixed deposit is to earn high rate of interest without risk. Now -a-day’s most of the banks offer decent interest rate.

People want to invest on the property like buying land, home flat etc. for very high return. But there are risks associated with it and you need to invest huge amount of money. If you do not have that much money and also you are a risk averse person, bank Fixed Deposits are the best option you have. More over you can take loan against fixed deposits or can withdraw it prematurely in case of urgency. So liquidity is another reason of popularity of FDs besides handsome return.

Types of Fixed Deposited

There are mainly two kinds of fixed deposits. Fixed deposit issued by a bank and the other kind of fixed deposit is provided by the corporate. Corporate Fixed deposits pay a higher interest rate but also carry a higher risk. You can also opt for monthly/quarterly income plan or a cumulative return. Then there is Tax-savings Fixed deposits which pays a little less interest but save your tax liability (suitable for 30% tax bracket).

Which bank gives highest

Bank interest rates are different depending on where your account is. You can compare interest rates of different banks by visiting their websites. Among public sector banks presently PNB, Bank of India paying highest rate of interest. But it changes time to time. You must do your own research. One word of caution, though banks like Bank of India giving high rate of interest but you may not happy with their service. They don’t charge for most of their service which makes their branches over crowded and they are running their branches with very less man power. So you will waste your time standing in long queue. Choose your bank wisely and never deposit all your deposit in one bank (to know the reason please visit Deposit insurance in the event of bank failure and how to save tax on Fixed Deposits).

Here I provide links for different banks interest rates:

1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Bhartiya Mahila Bank
7. Canara Bank
8. Central Bank of India
9. Corporation Bank
10. Dena Bank
11. IDBI Bank
12. Indian Bank
13. Indian Overseas Bank
14. Oriental Bank of Commerce
15. Punjab National Bank
16. Punjab & Sind Bank
17. Syndicate Bank
18. UCO Bank
19. Union Bank of India
20. United Bank of India
21. Vijaya Bank

 State Bank of India Interest rates - click here