FD or term deposit is preferred mostly by investors who do not want to take risk with their hard earned money. The main reason is that fixed deposit offers guaranteed returns which are higher than the interest received on savings account. That is FD safeguards investor’s money. Moreover the tenure for FD is very flexible ranging from minimum 7 days to maximum of 10 years for most of the banks in India. Although the interest offered is low compared to other types of zero risk investments.
There are multiple prerequisites for opening a fixed deposit account such as:
- Depositor needs to have an account with the same bank in which he/she wants to open the account.
- Applicant should be minimum 18 years old.
- Another important criteria is the minimum deposit amount required to open the account.
Here’s the table showing minimum amount required for fixed deposit account by 25 banks in India along with the interest rate offered:
|Name of Bank||Minimum Amount (Rs.)||Interest Rate||Minimum Tenure||Maximum Tenure|
|State Bank of India||1000||3.75%-4.25%||7 Days||10 Years|
|IDBI Bank||10000||4.25%-6.9%||15 Days||20 Years|
|ICICI Bank||10000||4%-7.5%||7 Days||10 Years|
|HDFC Bank||5000||3.5% to 6%||7 Days||10 Years|
|Axis Bank||10000||3.5% to 6.75%||7 Days||10 Years|
|Andhra Bank||100000||4%-7.5%||7 Days||10 Years|
|Union Bank of India||1000||5%-6.8%||7 Days||10 Years|
|Bank of India||10000||4%-6.7%||7 Days||10 Years|
|HSBC Bank India||10000||3.15%-5%||7 Days||6 Years|
|Kotak Bank||10000||3.5% to 6%||7 Days||10 Years|
|Punjab and Sind Bank||1000||4%-7%||7 Days||10 Years|
|Deutsche Bank||20000||8% for 5 Years||7 Days||5 Years|
|Canara Bank||1000||4.20%-6.9%||7 Days||10 Years|
|Syndicate Bank||1000||4.75%-6.7%||15 Days||10 Years|
|Indian Bank||100||4%-6%||7 Days||10 Years|
|Citi Bank India||1000||3%-5.75%||7 Days||10 Years|
|Indian Overseas Bank||1000||4%-6%||6 Months||10 Years|
|Royal Bank of Scotland||NA||3%-4.25%||15 Days||5 Years|
|YES Bank||10000||5.75%-7.10%||7 Days||10 Years|
|IDFC Bank||10000||4%-7.20%||7 Days||10 Years|
|Federal Bank||1000||3.5% to 6.5%||7 Days||10 Years|
|DBS Bank India||10000||4%-6.7%||7 Days||5 Years & above|
|Bank of Baroda||1000||4.5%-6.5%||7 Days||10 Years|
|RBL Bank||10000||5%-8.15%||7 Days||10 Years|
|Punjab National Bank||1000||4.25%-6.7%||7 Days||10 Years|
FD is best recommended for investors who want protection plus returns from their investments. It is avoided by high risk takers mainly due to low returns and money being locked; which is not the case with high risk-high return investments such as equities and mutual funds.