Safest Fixed Deposits in India (2024)

FAQs

Safest Fixed Deposits in India? ›

HDFC Bank is often listed as the best FD scheme to invest in India.

HDFC Bank is often listed as the best FD scheme to invest in India.

Safety of fixed deposits: FDs are often considered safe because they are backed by banks or financial institutions.

Money market accounts, certificates of deposit, cash management accounts and high-yield savings accounts all carry FDIC insurance. Treasury bills, notes and bonds are backed by the U.S. government, making them another low-risk investment option.

Bank Fixed Deposit (FD)

Bank FDs are considered as one of the safest investment options in India as there are hardly any instances of a bank defaulting on FD. Bank FDs offer a much higher rate of interest than a regular savings bank account.

Top 9 Alternatives Of FD. Debt mutual funds invest primarily in debt instruments. Like a regular mutual fund, it offers a diversified portfolio managed by professional fund managers. Since the fund invests in debt, the credit risk is lower than equity mutual funds, and you can earn inflation-adjusted returns.

DCB Bank FD rates are in the range of 3.75-8.05% p.a. to the general public and 4.25-8.55% p.a. to senior citizens on tenures ranging from 7 days to 10 years. The interest rate on DCB Bank Tax Saving FDs is 7.40% p.a. for the general public and 7.90% p.a. for senior citizen depositors for tenures of 5 years.

The choice between Post office and bank FDs largely depends on individual preferences and financial goals. Post office FDs may be the better choice for those prioritising higher interest rates and government-backed security.

What bank millionaires use in India? ›

Most of the affluent keep personal accounts with State Bank of India. Most of the top civil servants are pleased to be with SBI. One reason, is the transparency. And, such law abiding personalities hardly need personal favour or attention because of their position.

A tax-saving fixed deposit (FD) account is a type of fixed deposit account that offers a tax deduction under Section 80C of the Income Tax Act, 1961. Any investor can claim a deduction of a maximum of Rs. 1.5 lakh per annum by investing in a tax-saving fixed deposit account.

Safest sector

You do not need to worry about fixed deposit security in India, banks fall under different categories like the private sector, public sector, co-operative banks and foreign banks. All these banks offer FDs, and all of them are covered by deposit insurance.

Safety and stability

Unlike stocks or mutual funds, FDs are not subject to market fluctuations, making them a low-risk investment. This stability ensures that your principal amount remains intact, providing you with a reliable financial cushion in times of need.

Corporate and Other Fixed Deposits

Corporate Fixed Deposit schemes offer higher returns on your investment, but choosing the right company is imperative. If you choose a good Company FD scheme, you will generally earn more on your investment than bank FDs as these schemes offer the highest interest rate on FD.

Where Is the Safest Place To Keep Cash? Deposit accounts—like savings accounts, CDs, MMAs, and checking accounts—are a safe place to keep money because consumer deposits are insured for up to $250,000, either by the FDIC or NCUA.

Individuals can diversify their portfolios with options like mutual funds, PPF, gold investments, REITs, and SIPs for potentially higher returns and protection against market fluctuations and inflation.