Check for the following things to pick the best Fixed Deposit plan:
-> Interest rate: This is the most important factor. Compare the interest rates on FD offered by different NBFCs and banks. According to the market trend, a rate closer to 8% or above is a good deal.
-> Check credibility: Opt for only 'A' rated deposit schemes. Look for credible ratings from reputable organisations like ICRA or CRISIL.
-> Deposit tenor: Usually, longer duration deposits offer higher interest rates. Check for the lock-in period of the FD scheme
-> Interest calculation and payouts: Check the frequency of interest payouts, whether it is monthly, quarterly, half-yearly or annually. Also, check for the option to reinvest the interest earned to increase your FD corpus.
-> Penalty: Check the penalties for breaking an FD before maturity in case of any emergency. Most of the NBFCs and banks lower the interest rates in case of premature withdrawal.