10 Best 2-Year FDs With Good Returns Up To 7%

Fixed deposits are a stable investment alternative that promises stable interest rates, special interest rates for seniors, multiple options for paying interest, and tax benefits. Before opening a new fixed deposit or renewing a current one, it is essential to measure the recent fixed deposit rates among the major banks in the country. There is a range of banks and Non-Banking Financial Companies (NBFC) that provide decent guaranteed returns on 2-year FDs. On 2-year FDs the current interest rates go up to 8.25 per cent for the general public and 0.50 per cent additional interest rate to senior citizens. Considering the assured returns, premature withdrawal, loan against FD, nomination facility and so on term deposits can be a good bet for the general public as well as senior citizens. Hence, considering your 2-year of investment horizon we have framed below the top banks that can currently fetch you an interest rate up to 7.00%.

2 Year FD Rates

Banks	ROI in % per annum for general public	ROI in % per annum for senior citizens
Utkarsh Small Finance Bank	7.00	7.50
Suryoday Small Finance Bank	6.75	7.25
Yes Bank	6.50	7.00
DCB Bank	6.50	7.00
RBL Bank	6.50	7.00
ESAF Small Finance Bank	6.50	7.00
KTDFC	6.00	6.25
Axis Bank	5.25	5.90
IDFC First Bank	5.20	5.70
ICICI Bank	5.00	5.50

Why you should opt FD on your portfolio?

When investing in market-linked securities to gain better returns, investors can be exposed to risks. Therefore, investors often need to pursue stable investment alternatives to ensure sustainable profitability. Fixed deposits are stable and, as compared to highly risky instruments, relate to assured returns. Firstly, even though an investor misses capital on other financial strategies, a part of its losses will be recovered from FD deposits.

Pros and cons of fixed deposits

Investors looking to invest in FDs, the following advantages can be beneficial for them:

• FDs provide assured returns on the invested amount, unlike most other investment vehicles.
• When it applies to the tenure of the scheme, the best FD plans provide flexibility as the tenure varies from 7 days to 10 years of most financial institutions.
• For non-cumulative fixed deposit plans, the lender can specify the frequency of the interest payout. They will, thus, serve as an additional income source.
• Though bank fixed deposits are of great value to many, they often suffer from some drawbacks. Fixed interest rates on deposits do not escalate with time or are in step with inflation. Consequently, if a person is attempting to beat inflation, they are not the right option for investment.
• For a fixed time, a lump sum balance is locked-in. If you wish to maintain reasonable returns from the deposit, you should not use this money in case of an emergency. Premature withdrawals relate to penalties and unwanted charges.
• When an investor wishes to pursue a premature exit from an FD, a part of their investment income from the scheme will end up being forfeited.
• Investors are not eligible for any tax deductions or rebates on fixed deposit interest earnings until an investor actively chooses for tax-saving FDs.

Why you must invest in fixed deposits?

For potential investors, fixed deposits are ideal investment vehicles. In addition, such structures can significantly benefit risk-averse people. There is almost no chance of principal failure, as FDs give guaranteed returns. That being said, investors should note that, as opposed to other high-risk alternatives, the rate of return on such an investment is restricted.