Among the various forms of investment opprotunities available in the current market for lay man including postal savings , bank deposit , mutual funds , metal (gold / silver) , Insurance , bonds etc there are few options offering much higher rate of return in comparision to others.
Due to inflation problem in the country whereby the figure of inflation is increasing at tremendous speed every week thereby quoting above 11% though it is expected to stay within a range of below 5% mark for smooth credit policies and average 9% growth rate maintainence . In order to check the problem RBI credit Policies updated from time to time stating repo rate , reverse repo rate , bank rate , Central Reserve ratio etc are introduced to control the money flow in the market and liquidity concerns.
As per the various market return options fixed deposit is nowdays offering the highest return on investement. The rate of interest has jumped from 5.50% slab to 9.5%. This is secured form of investment with assurance of redemption on a particular date for the period deposited for. There is no risk involvement in this investment. Also on the last budget Fixed deposit for 5years and above is included under 80c thereby allowing the tax benifit to the asseessee provided it could not be redeemed before maturity.
Rate of interest vary from bank to bank and for period of investment.Previously long term deposit attarct higher rate of ineterst but nowdays small period fixed deposit attract much higher rate of interest as bankers expect that the rate of interst to fall in near future and the current high rate is due to political unstability , crude price , infation in the copuntry.
Among various Banks Federal Bank , Allahabad bank offer highest rate of interest than any other bank for short to medium and long term.