What is the rate of ₹50,000 FD for 1 year?

The interest rate on a ₹50,000 fixed deposit (FD) with a tenure of one year can vary across financial institutions. However, on average, a one-year FD of ₹50,000 currently offers an interest rate of around 6% to 9%.

Several reasons can influence FD interest rates:

• RBI Policy Rates: When the Reserve Bank of India (RBI) lowers its main interest rates, FD rates usually go down. When RBI rates increase, FD rates tend to follow.
• FD Tenure: Longer-term FDs often come with higher interest rates than shorter-term ones.
• Investor Category: Some financial institutions offer slightly better rates to senior citizens and female investors.
• Deposit Amount: Larger FD amounts can at times qualify for higher interest rates.
• Interest Payout Option: Investors can choose to receive interest payouts monthly, quarterly, or at maturity, depending on their financial needs.
• Type of Institution: Smaller financial institutions like cooperative and rural banks or NBFCs often offer better rates than bigger public or private banks for the same FD duration.

Also, interest rates tend to fluctuate based on the evolving macroeconomic conditions and liquidity scenario.