Fixed Deposits(FDs) still stand as one of the most popular investment choices by the Indian investors who are willing to have a stable and guaranteed interest. The current interest rates in the bank FDs of India vary widely among the small finance banks, banks operating in the private sector, and those operating in the public sector. The best rates have remained in small finance banks with the private and public sector banks coming with good rates on select tenures. Interest rate benefits are also given to senior citizens in most institutions. This new guide identifies the best FD rates, tax saving FD options, Top Stories and points to consider before investing which can help you to make a varied and fulfilling financial choice.
Highest FD Interest Rates by Bank Type
1. Small Finance Banks
The FD rates of small finance banks are the most attractive now:
- Suryoday Small Finance Bank: A maximum of 8.05 percent p.a.
- Jana Small Finance Bank: up to 8.00 p. a.
- Slice Small Finance Bank: 7.75 to 7.75 p.a.
They are the best banks to invest in when one wants a higher return with moderate amounts of deposit and has a choice of tenure.
2. Private Sector Banks
The interest rates being offered by the private banks in their FDs range over 7 per cent across a range of tenure. Notable options include:
- SBM Bank India Ltd: 7.50% p.a.
- Bandhan Bank, DCB Bank, CSB Bank, RBL Bank, IDFC FIRST Bank, IndusInd Bank, and Yes Bank are also good competitors with above 7% p.a. rates, which makes them a good contender in the mid-range tenures.
3. Public Sector Banks (PSU)
The banks in the public sector have a comparatively stable though slightly lower FD rates.
- SBI is also safe with 1-2 year tenure at 6.25 p.a. which is assured of reliability to the conservative investors.
FD Interest Rates among the aged citizens.
- In all the types of banks, senior citizens have an additional interest as benefits to FDs.
- IndusInd Bank has a 0.50 percent p.a. additional.
- These improved rates assist the retirees to achieve higher returns in their savings.
Tax-Saving FD Rates (5-Year Tenure)
- ICICI Bank: 6.60% (general), 7.10% (senior citizens)
- Central Bank of India 6.50% (general), 7.00% (elderly citizens)
Tax saving FDs provide deductions according to Section 80C and thus are a good long term investment tool.
Key Considerations Before Investing
The FD rates depend on the type of bank, tenure and amount of deposit. Looking at the most recent FD rates is always advisable because the rates are subject to revision on a periodical basis.
