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

    Given the fact that investing in fixed deposits guarantee 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 6.75% 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 Effective from
    RBL Bank FD 6.60% 5 years 7 May 2021
    Yes Bank FD 6.75% 5 years to 10 years Contact the bank
    IndusInd Bank FD 6.50% 5 years 26 April 2021
    DCB Bank FD 6.50% 3 years to 10 years 15 May 2021
    Lakshmi Vilas Bank FD 6.00% 541 days to 730 days 4 May 2021
    TNSC Bank FD 6.00%
    • 12 months to 24 months
    • 5 years and above
    9 December 2020
    Bandhan Bank FD 5.75% 1 year to less than 3 years 7 September 2020
    IDFC First Bank FD 4.35%
    • 366 days to 398 days
    • 400 days to 10 years
    12 May 2021
    Karur Vyasya Bank FD 6.00% 5 years 11 January 2021
    Tamilnad Mercantile Bank FD 5.75% 1 year to less than 2 years 1 September 2020

    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 and ICICI are offering up to 5.50% p.a., RBL Bank is offering 6.60% p.a. on a term deposit having a tenure of 5 years. The highest rate of return on a fixed deposit is offered by YES Bank. The lender is offering 6.75% p.a. on a tenure that ranges between 5 to 10 years. IndusInd Bank and DCB Bank are offering up to 6.50% p.a. while Karur Vyasya Bank, TNSC Bank and Lakshmi Vilas Bank are offering a highest of 6% p.a. on opening a fixed deposit. Tamilnad Mercantile Bank and Bandhan Bank are offering a highest of 5.75% p.a. while the highest rate of return offered on a FD by IDFC Bank stands at 4.35% p.a. In case, you are looking to invest funds in a fixed deposit, you can compare the rates offered by various lenders and calculate the amount you will receive at the time of maturity.

    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.

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