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%||
||9 December 2020|
|Bandhan Bank FD||5.75%||1 year to less than 3 years||7 September 2020|
|IDFC First Bank FD||4.35%||
||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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