Earn 9.25% Interest on FD! This Bank Offers the Best Fixed Deposit Rates

Introduction
Why Fixed Deposits (FD) Are a Safe Investment?
North East Small Finance Bank – A Trusted Name
North East Small Finance Bank FD Interest Rates
What is a Callable FD?
What is a Non-Callable FD?
Benefits of Investing in FD with High Interest Rates
Things to Consider Before Investing in an FD
Conclusion

Introduction

In today's economic environment, it is difficult to find a safe, high return investment. With excess volatility in the stock market, several investors are considering investing in risk-free avenues. Fixed Deposits (FD) are still among the more preferred investment options for Indian investors because they are safe, stable and offer secured returns. One such bank currently offering attractive FD rates is the North East Small Finance Bank, who has FD rates up to 9.25%, which is a good investment opportunity for the general population. Let's get into details Finally!

Why Fixed Deposits (FD) Are a Safe Investment?

Fixed Deposits (FDs) are one of the safest investment alternatives as they offer guaranteed returns with very less risk. FDs offer some of the most secure interest rates, unlike stock markets as you can count on your principal being safe while still retaining a steady income. Also FDs offered by commercial banks are insured by Deposit Insurance and Credit Guarantee Corporation (DICGC) up to Rs. 5 lakh for each depositor.

Key Benefits of Fixed Deposits:

Assured returns with no market risk.
Multiple tenure options based on financial goals.
Tax-saving options under Section 80C for eligible FDs.
Easy liquidity for Callable FDs.
Senior citizens enjoy higher interest rates in many banks.

North East Small Finance Bank – A Trusted Name

North East Small Finance Bank started its operations as a Small Finance Bank on 17th October 2017 and is regulated by the Reserve Bank of India (RBI). This bank has been granted a license under Section 22(1) of the Banking Regulation Act, 1949, ensuring that it adheres to RBI norms and provides secure banking services.

North East Small Finance Bank FD Interest Rates

According to the bank's official site, North East Small Finance Bank offers attractive FD interest rates, particularly for deposits of up to Rs. 3 crore. The details are as follows:

FD Type	Tenure	Deposit Range	Interest Rate
Callable FD	18 months 1 day to 36 months	Up to Rs. 3 crore	9.00%
Non-Callable FD	18 months 1 day to 36 months	Rs. 1 crore - Rs. 3 crore	9.25%

These rates are applicable from 18th January 2025 onwards.

What is a Callable FD?

A Callable FD is a type of fixed deposit that allows investors to withdraw their funds partially or completely before maturity. However, banks may charge a penalty for premature withdrawal, usually up to 1% of the interest rate.

Features of Callable FD:

Flexibility to withdraw before maturity.
Interest penalty may apply.
Lower interest rate than Non-Callable FDs.

What is a Non-Callable FD?

A Non-Callable Fixed Deposit (FD) is an FD type which does not allow for premature withdrawals. Investors must keep their funds locked in until the end of the term.

Features of Non-Callable FD:

Higher interest rates than Callable FDs.
No premature withdrawal permitted.
Good for long-term investors who do not anticipate needing liquidity before the end of the term.

Benefits of Investing in FD with High Interest Rates

Guaranteed Returns: Unlike stocks or mutual funds, FD investments provide stable income without risk.
Higher Interest Earnings: If you invest at an interest rate of up to 9.25%, your money will increase substantially, and this means time is important.
Security: Regulated by the RBI, a fixed deposit investment is reliable..
Customizable Tenure: You can select a tenure to meet your financial requirements.
Best for Senior Citizens: More interest for seniors is often provided for fixed deposits..

Things to Consider Before Investing in an FD

Before investing, keep these points in mind:

Tenure Selection: Choose a duration that suits your financial goals.
Liquidity Needs: Opt for Callable FDs if you may need funds before maturity.
Tax Implications: Interest earned on FDs is taxable under your applicable income tax slab.
Comparison with Other Banks: Always compare FD rates before locking in funds.

Conclusion

If your objective is to find an investment option that is both safe and yields high returns, North East Small Finance Bnak's fixed deposit account that offers interest rates as much as 9.25%, offers a great opportunity. Whether you are one who does not want to take risks as an investor or one simply looking for a safer option given the motions of the stock market, fixed deposits are a great option. Be sure to assess your investment needs and time horizon before determining what is best for you. Happy Investing!