Investing in Fixed Deposits (FDs) is one of the best means of saving and utilising your hard-earned money. However, before going through with the investment, it is always recommended to check the yields instead of the interest rates. There are numerous fixed deposits that offer excellent yields. So, before discussing the various economic FDs, let’s find out what does yields refer to.
Banks compound interest rates after specific intervals. The majority of the banks tend to do it quarterly whereas, others do it monthly or annually. So, if you deposit Rs 1,00,000 at an interest rate of 8% per annum in a bank that compounds interest rates quarterly, you’ll gain the interest of Rs 2,000 at the end of the first quarter. So, by the end of the next quarter, you will gain interest on Rs. 1,02,000 instead of Rs. 1,00,000. This means the yields will be higher if the interest is compounded at shorter intervals. So, here we are with a few fixed deposits that are extremely economical and will help you earn significant profits.
Mahindra Finance
If you choose to invest in an FD at Mahindra Finance, you can earn yields of up to 9.65% on a 40-month deposit and up to 9.40% on a 33-month deposit. This is the case for the cumulative scheme only. Mahindra Finance is a relatively safe option for investing your money without the risk of loss. The company is awarded the AAA rating by the rating agencies for its FDs. The considerable yields on the deposits can make the investment very profitable.
Shriram Transport Finance Company
The yields offered by the FDs at Shriram Transport Finance company are also very high. If you go for the 5-year deposit that offers an 8.88% interest rate with monthly rests, you can receive a yield of as high as 11.13%. The results are relevant for the cumulative scheme only. If you choose to invest in a 48-month FD, you will receive the interest rate of 8.65% while the yield gained will amount to 10.29%. It is recommended to stay cautious and think it through before investing since the company does not offer secure deposits and there is an element of risk that must be taken into account.
Jana Small Finance Bank deposits
Jana Small Finance Bank is among the few banks that were granted the license to function as a finance bank a few years ago. The bank offers very appealing interest rates on deposits. On a regular FD, it offers an interest rate of 8.25% on a deposit ranging from 3 to 5 years. These 5-year FDs offer a yield as high as 10.09%. With regard to the safety and any loss of risk, the investors are advised to do thorough research before investing.
Suryoday Small Finance Bank
Fixed deposits in this bank offer an 8.75% interest rate for the tenure of 2-3 years. The yield offered by these FDs can reach as high as 9%. The bank offers special fixed deposits for senior citizens where the yields can reach as high as 9.58%.