Index Fund Corner
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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
A risk-averse investor should go for fixed deposit accounts. In fixed deposits, interest is accrued on the amount deposited over a predetermined time frame, which might be monthly, quarterly, or annual.
Deposit interest rates vary with tenure, ranging from 3 per cent p.a. to 9.54 per cent p.a. This also depends on whether you are putting your money in a small financing bank, public sector corporation, or private sector organisation.
It is important to compare interest rates to produce high-interest income on an FD. However, there are significant differences in the FD interest rates offered by a few banks when you compare them.
Below are a few factors that are in charge of these differences. Read more to know:
Fluctuations in the Repo Rates
When the RBI lends money to any commercial bank in the event of a shortfall, it charges the repo rate. As a result, banks and the interest rates they provide on FDs, retail loans, etc. are immediately impacted. When repo rates are rising, FD rates are often higher; on the other hand, if the RBI regularly lowers repo rates, FD rates are lower.
Tenure of FD
You can select any term when making an FD reservation as long as it falls between the bank’s minimum and maximum tenure range. For example, the FD tenure at AU Small Finance Bank might be anywhere from seven days to ten years. The Fixed Deposit Account’s interest rate and tenure are directly related. Generally speaking, banks provide greater FD rates over longer periods of time.
Age
The FD rates are also influenced by age. Rates are higher for seniors or those over 60 than for those under that age. For example, AU Small Finance Bank gives elderly citizens who book FDs up to 0.50 per cent p.a. in extra interest.
Supply and Demand Situations
Changes in the FD rate are also influenced by the nation’s money supply and demand. Interest rates on bank FDs are higher in expanding economies when there is a greater need for money. However, interest rates often decline when the money supply continuously exceeds demand.
Renewability
Nowadays, auto-renewal features for fixed deposit accounts are available from the majority of top banks. To earn a marginally higher interest rate, you can choose to have your FD auto-renew.
The amount invested
The amount of interest you will earn on your investment is even influenced by how much you put into the FD Account. Banks typically offer different interest rates for certain categories, such as FD sums under Rs 2 crore.
Economic Situation
One of the most important elements influencing fixed deposit rates is the country’s economic situation, which includes monetary and fiscal policy. For instance, increased inflation typically results in higher interest rates being provided on products such as bank FDs. If inflation is lower, on the other hand, the converse is true.
