Fixed Deposit interest rates on 3-5 year FDs offered by 10 banks
Fixed deposits or term deposits are one of the most popular financial tools in our country because of their guaranteed returns, tenure flexibility, ease and clarity of investment, and high liquidity.
The RBI’s decision to keep the repo rate unchanged at a low of 4% for over a year now to counter the economic fallout of the Covid-19 pandemic has resulted in most of the banks reducing their FD interest rates.
While most banks are currently offering interest rates of 4.25% to 5.50% p.a. for conventional FDs of less than Rs 1 crore, a few private and small financing institutions are nevertheless offering above-average returns of up to 7.25% p.a.
Here’s a list of 10 banks that are offering the highest interest rates right now (applicable to normal FDs amounting to less than Rs 1 crore). Senior citizen depositors have an advantage here in that they usually get preferential rates by up to 50 basis points over and above the normal rates:
- Suryoday Small Fin. Bank
- Ujjivan Small Fin. Bank
- Jana Small Fin. Bank
- DCB Bank
- RBL Bank
- Yes Bank
- Fincare Small Fin. Bank
- Equitas Small Fin. Bank
- AU Small Fin. Bank
- Deutsche Bank