{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/investment\/how-to-choose-the-best-fd-scheme-with-high-returns\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/investment\/how-to-choose-the-best-fd-scheme-with-high-returns\/","headline":"How to Choose the Best FD Scheme with High Returns","name":"How to Choose the Best FD Scheme with High Returns","description":"If you\u2019re here, you already know the benefits of investing in a fixed deposit \u2013 stable, guaranteed returns, minimal risk, and unparalleled safety. Plus, almost all banks now offer FD schemes, providing you with a range of schemes to choose from according to your financial goals. However, such rich variety may also present itself as...","datePublished":"2022-02-13","dateModified":"2022-12-20","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/#Person","name":"IndusInd Bank","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/fd-1.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/fd-1.jpg","height":400,"width":1060},"url":"https:\/\/www.indusind.com\/iblogs\/investment\/how-to-choose-the-best-fd-scheme-with-high-returns\/","about":["Investment"],"wordCount":1051,"keywords":["FD interest rates","fixed deposit","fixed deposit scheme","high fixed deposit interest rates"],"articleBody":"If you\u2019re here, you already know the benefits of investing in a fixed deposit \u2013 stable, guaranteed returns, minimal risk, and unparalleled safety. Plus, almost all banks now offer FD schemes, providing you with a range of schemes to choose from according to your financial goals.However, such rich variety may also present itself as a problem. Some banks may provide partial withdrawal facilities, and others may provide higher interest rates and tax benefits. Essentially, the convenience of choice becomes a burden. How, then, should you proceed to choose one?Well, here are a few tips you can use to land yourself a FD scheme that is both lucrative and convenient.Credibility of the Financial InstitutionWhen you invest in a fixed deposit, you\u2019re essentially deciding to park your funds with a bank for presumably an extended period. Therefore, you must ensure your funds are in safe hands and that you will get assured returns.To do this, check the safety rating of your chosen deposit. Look for ICRA\u2019s MAAA rating or CRISIL’s FAAA rating. Usually, the higher the rating, the more credible the fixed deposit scheme is. Also, remember to opt for an FD scheme provided by a commercial bank like IndusInd Bank wherever possible. The reason? Our FDs have an added layer of security, thanks to the depositor insurance provided by the DICGC.Interest OfferedThe fixed deposit interest rates usually vary from bank to bank. However, it doesn\u2019t entirely depend upon which bank you\u2019re choosing. In fact, you can also get a different interest from the same bank depending on your age, tenure of the deposit, and even the amount you deposit. So, check the rates offered beforehand and opt for the scheme that promises the most returns.Cumulative or Non-cumulative FDBanks allow you to choose between a cumulative or a non-cumulative deposit when you apply. Wondering what the difference is? Well, a cumulative deposit allows you to reinvest the interest earned, allowing you to earn interest upon it, essentially compounding the benefits. Non-cumulative deposits, on the other hand, credit the interest regularly earned to your bank account.So, which one should you choose? Take a look at your financial goals. If you are someone who could benefit from monthly payouts, choose a non-cumulative deposit. Otherwise, opt for a cumulated deposit instead.Premature Withdrawal ProcessYou can\u2019t predict when a financial emergency may strike. But what you can do is choose a bank that allows you to withdraw money from your fixed deposit when you\u2019re in a cash crunch. Many banks, like IndusInd Bank, have started offering the provision of partial withdrawal to help their customers acquire some quick cash.However, it\u2019s important to note that some banks may charge premature withdrawal charges. To optimally cut your losses, it\u2019s recommended that you choose a bank that charges little to no early withdrawal fees.Ease of ApplicationNo one wants to stand in long queues at the bank just to open a fixed deposit. And therefore, you should consider the ease of FD application, including the number of forms required, the documentation involved, and the processing time before choosing an FD scheme. Most importantly, check if they offer an online application process. The benefits of the online process typically include fast processing times, and convenient application, right from the comfort of your home.What\u2019s more, make sure your bank offers timely support through multiple modes in case you\u2019re stuck with the application at any stage.Parting ThoughtsWant to cut short the long and arduous research process that involves extensively shopping and googling around. Well, you can simply opt for IndusInd Bank\u2019s lucrative fixed deposit schemes. Along with hassle-free instant online booking, we offer high fixed deposit interest rates, auto-renewal and multiple options for interest payment.What\u2019s more, we also offer video KYC facilities, making the FD booking process even more convenient. Get started on your investment journey by visiting our website.Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.Share This:"}