If you are looking for a safe and easy way to grow your savings, fixed deposits (FDs) are one of the best choices. They offer guaranteed returns without the risks of stock markets. Many people in India prefer FDs because they are simple, secure, and offer steady growth of money.
Some key benefits include:
Fixed and guaranteed returns
Flexible tenure options (from a few days to 10 years)
Higher interest rates for senior citizens
Easy access to funds through premature withdrawal or loan against FD
Backed by reliable and reputed banks
How Your ₹1,00,000 Can Grow in a Fixed Deposit
Currently, certain banks offer around 7.5% to 8% interest on FDs. If you invest ₹1,00,000, your money can grow to ₹1,16,022 in about 2 years. That means you earn ₹16,022 as interest.
Here’s a quick breakdown:
Principal: ₹1,00,000
Interest: ₹16,022
Total after maturity: ₹1,16,022
Tenure: 2 years
Interest Rate: 7.5%–8.0% per annum
Top Banks Offering Best Returns on ₹1,00,000
Here is a list of some top banks that offer attractive interest rates on fixed deposits:
| Bank Name | Rate (General) | Senior Rate | Tenure | Maturity (General) | Maturity (Senior) |
|---|---|---|---|---|---|
| SBI | 7.10% | 7.60% | 2 yrs | ₹1,15,012 | ₹1,16,622 |
| HDFC Bank | 7.20% | 7.70% | 2 yrs | ₹1,15,422 | ₹1,16,841 |
| ICICI Bank | 7.00% | 7.50% | 2 yrs | ₹1,14,822 | ₹1,16,332 |
| Axis Bank | 7.20% | 7.70% | 2 yrs | ₹1,15,422 | ₹1,16,841 |
| IDFC FIRST Bank | 7.50% | 8.00% | 2 yrs | ₹1,16,022 | ₹1,17,443 |
| Kotak Mahindra Bank | 7.20% | 7.70% | 2 yrs | ₹1,15,422 | ₹1,16,841 |
| IndusInd Bank | 7.50% | 8.00% | 2 yrs | ₹1,16,022 | ₹1,17,443 |
Note: Rates may change. Always check with the bank before investing.
How to Open a Fixed Deposit
You can open an FD either online or by visiting a bank branch.
Online Process:
Log in to your bank’s app or internet banking
Go to ‘Fixed Deposit’
Enter amount and tenure
Choose interest payout type (monthly, quarterly, or at maturity)
Confirm and submit
Offline Process:
Visit your nearby bank branch
Fill out the FD application form
Submit KYC documents (if needed)
Deposit money via cheque or transfer
Collect the FD receipt
Key Benefits of Investing ₹1,00,000 in FD
Investing in a fixed deposit offers several strong advantages:
Capital Safety: Your money remains safe and untouched.
Fixed Returns: You know exactly how much you’ll get at maturity.
Compounding Growth: In cumulative FDs, interest gets added to the principal.
Loan Option: You can take a loan against your FD in emergencies.
Flexible Durations: Choose a term from a few months to many years.
Things to Know Before Investing in an FD
Here are some important things to check before you put your money in a fixed deposit:
| Factor | Details |
|---|---|
| Minimum Investment | ₹1,000 (may vary by bank) |
| Payout Options | Monthly, Quarterly, Yearly, or Cumulative |
| Premature Withdrawal | Allowed with a penalty (0.5%–1% lower interest) |
| Loan Against FD | Available (up to 90% of FD amount) |
| Tax Benefit | Only on 5-year tax-saving FDs under Section 80C |
| TDS (Tax Deducted) | Applicable if interest is over ₹40,000 (₹50,000 for seniors) |
| Extra Benefit for Seniors | Higher interest (usually 0.50% more) |
Who Should Consider FD Investments?
This FD scheme is great for:
Beginners who want safe and steady returns
Senior citizens who want stable income
Salaried individuals saving for short-term goals
Parents planning for school or college fees
Anyone looking for a low-risk savings option
Final Words
Fixed deposits are a trusted way to earn good returns with almost zero risk. With interest rates giving you up to ₹16,022 on a ₹1,00,000 deposit in just 2 years, FDs remain a smart choice in today’s market. Just make sure to compare different banks, check the terms, and choose the one that suits your financial goals best.
Disclaimer: Interest rates and terms are subject to change. Please check with your bank for the most updated details. This article is for information only, not financial advice.