(MENAFN- AsiaNet News)

Fixed Deposits (FDs) are a safe investment option. With banks like Federal Bank and Union Bank offering competitive interest rates, choosing the right bank is crucial for maximizing returns.

Fixed deposits are a secure investment favored by many Indians. You deposit your money for a specific period, typically a year, and receive a fixed interest rate. Importantly, FD interest rates can change. A 0.5% increase on an active FD could mean an extra Rs 5,000 annually on a Rs 10 lakh FD.

HDFC Bank: India's largest private bank offers 6.25% for regular customers and 6.75% for seniors on 1-year FDs. ICICI Bank: Offers the same rates as HDFC. Kotak Mahindra Bank: Also offers 6.25% (regular) and 6.75% (senior citizens). Federal Bank: Offers 6.40% (regular) and 6.90% (senior citizens). SBI: Offers 6.25% (regular) and 6.75% (senior citizens). Union Bank of India: Offers 6.40% (regular) and 6.90% (senior citizens).FD interest rates and returns vary based on your tenure and investment amount. Federal Bank and Union Bank offer higher rates, leading to better returns. Federal Bank's 6.90% for seniors is a great option for secure, high-interest earnings. HDFC, ICICI, Kotak Mahindra, and SBI offer high FD security, but Union Bank and Federal Bank's slightly higher rates are worth considering.Choosing banks with higher FD interest rates boosts your investment returns. Federal Bank and Union Bank FDs offer excellent returns and security. Before investing, compare current rates, interest earned, FD amount, tenure, and available features.Given the secure, high returns from FDs, investors might consider Federal Bank and Union Bank. Leading banks like HDFC and SBI offer security and trust. Even small differences in FD rates can significantly impact your wealth. Choose an FD with a high interest rate to maximize your income.

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