Floating Rate FD

Floating rate term deposits are a variant of fixed deposits,  wherein the rate of interest is not fixed for the entire duration of the deposit, which fluctuates with the reference rate that periodically reset.

Who can Invest

Any individual, separately or jointly, minor (through his or her guardian), and head of HUF are eligible to invest in floating FD.

Who is it suited for

Floating FD is best suited for the financially aware investors, who is not averse to taking  call on the direction of future interest rates/inflation.

What are your floating rate FD options?

IDBI bank and Yes bank are the two banks which provides floating rate fixed deposits.

Benchmark and spread are key

The type of benchmark and the spread will determine whether or not an FD will give you superior returns.

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