Two people invest the same amount in a Fixed Deposit (FD) for the same period, yet one earns more interest than the other. The difference may come down to the interest rate their chosen institutions offer. Comparing FD rates before investing helps you make a more informed choice and earn better returns on your savings.
Why Do FD Rates Differ From Bank to Bank?
A Fixed Deposit lets you invest a lump sum for a set period at an agreed interest rate. Banks and non-banking financial companies (NBFCs) set their own FD rates based on factors such as their funding needs and the deposit tenure.
This means two institutions may offer different rates for the same deposit amount and tenure. Small finance banks and NBFCs may offer higher rates for certain periods, while other banks may offer different benefits or terms.
Instead of choosing an FD based on its interest rate alone, compare the rate, tenure, issuer and withdrawal conditions before investing.
How Can You Compare FD Rates From Multiple Banks on JioFinance app?
Checking FD rates on several websites can take time. The JioFinance service brings FD options from partner banks and NBFCs together, making it easier to compare available offers in one place.
Here are some details to review before choosing an FD:
| What to compare | Why it matters |
| Interest rate | Helps you estimate how much interest your deposit may earn |
| Tenure | Helps you choose a deposit period that matches your financial goal |
| Issuer details and credit rating | Helps you assess the institution and understand its credit risk |
| Senior citizen rates | Shows whether an additional interest rate is available for eligible senior citizens |
| Premature withdrawal terms | Helps you understand the conditions and possible charges for closing an FD early |
Compare deposits with the same tenure and payout option wherever possible. This gives you a clearer picture of the returns you may receive.
What are the Key Features of FDs on JioFinance?
The JioFinance service offers features designed to make comparing and managing FDs easier.
- Interest rates of up to 8.3% p.a.: Eligible deposits may offer rates of up to 8.3% per annum, subject to applicable terms and conditions. Rates vary by issuer, tenure and investor category.
- Flexible tenures: Some available deposits offer tenures as short as seven days, depending on the issuing institution and product.
- Online booking: You can complete the required KYC process, make the payment and receive your FD confirmation through the app, subject to the issuer’s process.
- Deposit management: Manage eligible deposits through the app without visiting a branch, for supported online processes.
- Consolidated view: View details of deposits booked through the platform, including available maturity information, in one place.
Check the latest rates and product terms in the app before investing, as interest rates and available options can change.
How Safe Are FDs From Banks and NBFCs?
Before investing, understand who issues the FD and what protection, if any, applies. Bank deposits and NBFC deposits do not have the same deposit insurance cover.
How Does Deposit Insurance Work for Bank FDs?
The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures eligible bank deposits up to INR 5 Lakh per depositor per bank, including principal and interest. This limit applies to all eligible deposits you hold with the same bank across its branches, subject to DICGC rules.
Before investing, check whether the bank is covered by DICGC and consider how much you already hold with that bank. Opening several FDs at different branches of the same bank does not increase the insurance limit.
What Should You Know About NBFC FDs?
DICGC deposit insurance does not cover NBFC deposits. Their risk depends on the issuer’s financial position and ability to repay its depositors.
Credit ratings can help you assess an issuer’s credit risk, but they do not guarantee repayment. Before choosing an NBFC FD, check the issuer’s current rating, the rating agency’s assessment, the deposit terms and, where applicable, whether the NBFC is authorised to accept public deposits. The Reserve Bank of India does not guarantee repayment of NBFC deposits.
| FD type | What to know |
| Eligible bank FD | DICGC cover of up to INR 5 Lakh per depositor per bank, including principal and interest |
| NBFC FD | No DICGC cover; review the issuer’s credit rating, financial position and deposit terms |
How Can You Book an FD on the JioFinance App?
You can follow these steps to explore and book an available FD through the app:
- Log in: Open the JioFinance app and sign in using your registered mobile number.
- Compare available FDs: Review the interest rates, tenures and issuer details displayed for partner institutions.
- Choose your deposit: Select the issuer, deposit amount and tenure that suit your savings goal.
- Complete KYC: Provide the required details and complete identity verification through the available process.
- Make the payment: Follow the payment instructions shown during booking.
- Check your confirmation: Review the FD confirmation and keep a copy of the details for your records.
The exact process may vary depending on the issuing institution and the deposit you select. Review the terms before confirming your investment.
Conclusion
A Fixed Deposit can help you earn interest over a chosen period, but the returns depend on the rate, tenure and terms offered by the issuing institution. Comparing FDs from different banks and NBFCs can help you choose the option that best suits your savings goals. JioFinance brings available options together and supports online booking and management. Before investing, check the latest rates, withdrawal conditions and applicable deposit protection so you can decide with confidence.
