Pick the best Fixed Deposit plan by considering the following:
• Interest Rate: Compare interest rates on FD for different types of FDs offered by different institutions.
• Credibility: Opt for only 'A' rated deposit schemes, with credible ratings from reputable organisations like ICRA or CRISIL.
• Deposit tenor: Longer duration deposits usually offer higher interest rates. Check the lock-in period of the FD scheme.
• Interest calculation and payouts: Check frequency of interest payouts, whether it is monthly, quarterly, half-yearly, or annually.
You can reinvest the earned interest to increase your FD corpus.
• Penalty: Check the penalties for breaking an FD before maturity, in case of any emergency. Most NBFCs and banks lower the interest rates in case of premature withdrawal.