How We Can Choose the Best FD Plan for Future?

Selecting the best financial instrument for investment is easier said than done. First, you must check the returns, risk factors, stability, and ease of application. And, fixed deposits or FDs score high on all these parameters.

However, finding the best fixed deposit scheme is not always easy. It would be best if you kept various factors in mind to get the best returns.

The following sections will simplify your task of finding the best fixed deposit scheme in 2021. Read on to learn about the top tips you need to select the best FD in 2021. 

The Top-5 Best Ways to Choose the Best Fixed Deposit Scheme in 2021

The following tips will help you to find the best fixed deposit scheme in 2021:

1. Choose a Lender Offering More Than 6.5% Interest A Year 

Finding the best FD interest rates is not tough if you know where to search. In India, three types of financial institutions offer fixed deposits. They are – banks, housing finance companies, and non-banking financial institutions. Among these, housing finance companies typically provide the best FD interest rates. For example, PNB Housing Finance offers interest rates of up to 6.95%. The minimum investment amount is generally INR 10,000.

2. Check The Rating Before Investing

Quite often, investors overlook the ratings before investing in company FDs. The ratings provided by credit rating bureaus like CRISIL or CARE indicate how safe the company is. These agencies evaluate various parameters like liquidity, maturity profile, renewal rate, etc., to issue a rating. The rating system usually ranges between FAAA and FD. Any rating above CRISIL FAA+ and CARE AA is treated as the best. Hence, before investing your money for a golden future, you must check its rating and choose the best financial instrument.

3. Choose The Right Mix of Cumulative and Non-Cumulative FDs

When you are investing for the future, cumulative fixed deposit schemes will be the best. However, since cumulative FDs do not provide periodic returns, you should also invest some amount in non-cumulative FDs. Non-cumulative FDs provide returns on a monthly, quarterly, half-yearly, or annual basis. Therefore, only the right combination of cumulative and non-cumulative FDs can create an impeccable investment portfolio.

4. The Application Procedure Must Be Seamless

Housing finance companies offer a seamless and convenient application system. You can visit the website of such financial institutions, download the application form, fill it, and send it to the company. You may need to submit documents like identity proof and address proof and the investment amount. The investment amount usually starts from INR 10,000. In addition, PNB Housing Finance offers a doorstep service facility where the company sends an investment manager to your house or office to collect the documents and open your FD account. 

5. Scour For Value-Added Services

Financial institutions like PNB Housing Finance offer various value-added services to their customers. For example, you can avail yourself of the auto-renewal and auto-maturity facilities. Moreover, interest income of up to INR 5,000 per year is free from TDS deductions. Additionally, you can get a loan facility against the FD by paying a nominal 2% higher interest rate than the prevailing highest interest rate. Hence, you may need to look at the value-added services to find the best fixed deposit scheme.  


The best fixed deposit or FD scheme offers the best interest rates and peace of mind. You can conveniently park your money in such financial instruments and stay assured of financial security. Remember to scan some reputed financial institutions before investing.

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