Best Fd Interest Rates With 2 Year Tenure

The FDs can be of tenure ranging from 7 Days to 20 Yr . The ROI for different schemes starts from 8.25% for the general public and 8.75% for senior citizens. The min amount required to open a Fixed Deposit in such scheme is Rs.1,000

Top 2-Year Fixed Deposits Rate

Investors in India can select from the various 2-Year fixed deposit schemes offering attractive interest rates. Many banks and financial institutions provide an avenue for investors to allocate their funds in this short-term saving and investment instrument. Investors are also offered assured returns, loans, and nomination facilities.

2 Year Fixed Deposit Highlights

The following highlights give a brief overview to investors inclined to invest in the 2-Year Fixed Deposit scheme.

  • The banks and NBFCs offer handsome interest rates on 2-Year Fixed Deposits.
  • An additional interest rate of 0.5% is provided to senior citizens.
  • The highest 2-year Fixed deposit interest rate offered is by the Utkarsh Small Finance Bank.

Benefits of 2-year Fixed Deposit Schemes

The following benefits can be availed of by investors who have invested in the 2-Year Fixed Deposit scheme:

  • The investor can withdraw after the lock-in period, which is two years.
  • Senior citizens can avail of additional interest on their deposits.
  • Investors can also avail of the provision to open a joint account and take a loan against the investment.
  • The term of the deposits is short-term. It is a lucrative option for investors looking to park their savings for a shorter tenure.

How Calculate your 2-Year Fixed Deposit Interest?

A diverse set of Fixed deposit bank calculators are available online that the concerned investor can utilise to derive the amount of interest and maturity value. This self-help tool has a straightforward interface that first-time users can easily access. The users shall mention the following values to compute the value:

  • Deposit Amount: This refers to the amount deposited by the investor.
  • Interest Rate refers to the rate of interest offered to the depositor on their deposits.
  • Tenure: refers to the tenure of the investment. A 2-year fixed deposit will automatically have a tenure of 2 years.

After successfully entering the values mentioned above, the calculator will instantly compute the interest and maturity amount's value.

This method maintains accuracy and is convenient for the user to compare and plan the interest amount they stand to earn from the investment scheme.

The interest amount can also be calculated manually by employing the following formulae:

Principal * {(1 + Rate of Interest /100)^ Tenure}] - Principal

How to choose the best 2-year fixed deposit for you?

Investors interested in investing their savings in the 2-Year fixed deposit scheme shall be meticulous about the following parameters. This would then guarantee them to get the best 2-year fixed deposit plan that complements their financial goals.

  • The interest rate offered on the 2-year fixed deposit to the investors varies from bank to bank. Investors shall thoroughly research and compute the interest amount they stand to earn from the deposits. A higher interest rate on the deposit will ensure a higher return on the investment.
  • Another decision the investor shall make should be whether they want to choose the Cumulative and Non-Cumulative FD. If they opt for the Non-Cumulative option, they’ll receive the interest payout monthly, quarterly, or annually. This helps the investor to earn regular income through the deposits.

However, the Cumulative FD option assists the investor in generating a substantial corpus at the time of maturity.

  • A parameter that the investor must assess before investing in a 2-year fixed deposit is the penalty. It refers to the amount a bank or financial institution may charge if the investor makes a premature withdrawal. Investors should choose the institution that charges a minimal withdrawal penalty in case they require the funds for unforeseen emergencies.

Why is Urban Money Ideal for Starting a Fixed Deposit Investment?

Urban money provides hassle-free financial and banking services to its customers with the assistance of sophisticated software solutions. Urban Money aims to provide a customer-friendly experience to its investors as they embark on their investment journey. Our services ensure that investors get the best interest rates on their Fixed deposit investments so they can conveniently attain their financial goals.

FAQs

Which bank is best for FD for two years?

The Utkarsh small finance bank is considered the best bank for investors who want to invest in a 2-year FD scheme. The interest rate offered on the FD tenure is also the highest.

What are the factors that affect FD interest rates?

The supply and demand affect the interest rate of the FDs. If the demand for credit from the FD is high, the banks increase the interest rates on the FD. And they also reduce the interest rates on the FD if the credit demand is low.

What types of Fixed deposits are available for 2 Years?

Banks and financial institutions offer the following types of fixed deposits to cater to the diverse needs of customers.

 

  • Standard FDs
  • Cumulative
  • Non-cumulative deposits
  • Senior Citizens FD
  • Special Deposits for Children
  • Flexi-Fixed deposits

What happens to my Fixed Deposit if the interest rate goes up or down?

The Reserve Bank of India determines the interest rate. If the interest increases and the FD is locked up for a long-term period, they will not be able to avail of the rise in interest rates.

Urban Money