• Top 10 Private Banks Providing Higher Interest Rates On FD Accounts

    Given the fact that investing in fixed deposits guarantees assured returns, it is one of the financial products where people look to invest. While the rate of return offered on term deposits by banks is quite attractive, lenders have of late cut down the interest rates as Reserve Bank of India has slashed the repo rate. Most banks operating in the country currently offer interest in the range of 2.50 – 5.50% p.a., however there are certain private lenders which are offering investors up to 6.80% p.a. for opening a Fixed Deposit account with them.

    Here is a list of private banks which are offering high interest rates on FDs:

    Name of Bank Interest rate (p.a.) Tenure
    RBL Bank FD 6.80% 5 years
    Yes Bank FD 6.25% 5 years to 10 years
    IndusInd Bank FD 6.50% 5 years
    DCB Bank FD 6.60% 3 years and above
    Lakshmi Vilas Bank FD 5.75% 5 years to 10 years
    TNSC Bank FD 6.00%
    • 12 months to 24 months
    • 5 years and above
    Bandhan Bank FD 6.25% 2 years to less than 5 years
    IDFC First Bank FD 6.25% More than 3 years to 5 years
    Karur Vyasya Bank FD 5.80% 5 years and above
    Tamilnad Mercantile Bank FD 5.60% 2 years to 10 years

    As seen in the table, some private banks are offering good interest rates on FDs when compared to other banks operating in the country. While some big private sector banks like HDFC bank are offering up to 5.75% p.a., RBL Bank is offering 6.80% p.a. on a term deposit having a tenure of 5 years. The lender YES Bank is offering 6.25% p.a. on a tenure that ranges between 5 to 10 years. IndusInd Bank offers 6.50% p.a. for tenures of 2 years to 5 years while DCB Bank is offering an interest rate of 6.60% p.a. for tenures of 3 years and above.

    The highest interest rates offered by TNSC Bank and Lakshmi Vilas Bank are 6.00% p.a. and 5.75% p.a., respectively. IDFC First Bank and Bandhan Bank offer 6.25% p.a. The highest interest rates offered by Tamilnad Mercantile Bank and Karur Vysya Bank stand at 5.60% p.a. and 5.80% p.a., respectively.

    It needs to be mentioned here that the rates mentioned in the table are for deposits below Rs.2 crore and are for general citizens. Senior citizens are eligible for additional interest up to 0.75% depending on the bank.

    Investing your funds in a FD will be ideal only if the lender is offering a high rate of return during these troubled times.

    Frequently Asked Questions (FAQs)

    1. What are the tenures offered by banks on fixed deposits?

      Banks usually offer tenures ranging from 7 days to 10 years on fixed deposits.

    2. Can I withdraw my fixed deposit before maturity?

      Yes, you can withdraw your fixed deposit before maturity.

    3. What is the highest interest rate offered by RBL Bank on its fixed deposits?

      The highest interest rate offered by RBL Bank on its fixed deposits is 6.80% p.a. for a tenure of 5 years.

    4. Will the interest earned on a fixed deposit be taxed?

      Yes, the interest earned on a fixed deposit will be taxed.

    5. Can I receive monthly interest on my fixed deposit?

      Yes, you can receive monthly interest on your fixed deposit by selecting the monthly interest payout option.

    6. Do senior citizens receive additional interest rates on fixed deposits?

      Yes, most banks offer an additional interest rate ranging between 0.25% to 0.75% to senior citizens on fixed deposits.

    7. Why do fixed deposit interest rates fluctuate?

      The interest rates on fixed deposits fluctuate due to numerous factors such as demand and supply, liquidity conditions, inflation, etc.

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