Best Fixed Deposit Rates (FD) From These Private Banks Offering Up To 7.05% Interest: Latest Details

Personal finance

oi-Kuntala Sarkar


Fixed Deposits (FDs) have been one of the most traditional and popular investment options among Indians. However, people are now trying to find other investment tools rather than FDs, due to the lower interest rates offered by banks.

Best Fixed Deposit Rates (FD) from these private banks offering up to 7.05% interest

Although the interest rates are set by the banks, these rates will always depend on the RBI repo rate. The repo rate will be set by the central bank each quarter, it can change or stay the same. For the past few quarters, the RBI has kept the repo rate unchanged at 4%, to boost liquidity in the economy. This is a historically low level in the country. Thus, banks are unable to offer higher interest on DFs and savings accounts. On the other hand, home loans, car loans, etc. are now quite affordable than before.

However, due to the safety quotient of FDs, investors are ordinary people who still do not reject the investment tool. Inflation is at a high level and the low interest rate is not bringing in much profit. But to keep money safe and have a guaranteed income after a certain period (fixed at the time of investing), people look for banks that offer better interest rates than others. In reality, private banks give better interest rates than public banks.

Here are some names of private banks and the rates are enlisted that offer higher interest rates (to the public), than others. Investors must open an account with the bank, to have an FD in the same bank.

Banks 1 year FD 2 years FD 3 years FD
IndusInd Bank 6.00% 6.00% 6.00%
RBL Bank 6.00% 6.30% 6.30%
DCB Bank 5.55% 5.95% 5.95%
SBM Bank India 7.05% 6.50% 6.00%
Axis Bank 5.10% 5.40% 5.75%

* Additional interest rates of around 0.50% are offered for seniors, but this will depend on the banks.

Top 4 banks offering interest rates up to 7.25%, in 3 years of fixed deposits (FD)Top 4 banks offering interest rates up to 7.25%, in 3 years of fixed deposits (FD)

Among the best private banks, Axis Bank offers the highest rate to date. HDFC Bank, ICICI Bank, Kotak Mahindra and Yes Bank Ltd., etc. offer a lower interest rate than Axis. For 1 year FD, Axis Bank offers an interest rate of 5.75% on money for deposits below Rs. 5 crore, which is quite high compared to market rates. However, keeping an FD account at any bank does not make any major difference, up to Rs. 5 lakhs. The central bank, RBI secures this amount of money for a FD. Thus, there will be no chance that the money will suffer any loss. The aforementioned banks are reputable banks listed with the RBI. So, for better interest rates and guaranteed income, one can open an FD account in one of these banks.

Article first published: Monday December 20, 2021, 13:47 [IST]

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