Best Fixed Deposit (FD) Rates Of These Private Banks Offering Upto 7.05% Interest: Latest Details

Fixed Deposits (FD) 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, because of the lower interest rates offered by the banks.

Although the interest rates are fixed by banks, these rates will always depend on the RBI's repo rate. The repo rate will be fixed by the central bank in each quarter, this might change or remain the same. Since the last few quarters, the RBI has been keeping the repo rate unchanged at 4%, to push liquidity in the economy. It is a historically low level in the country. So, the banks are being unable to offer higher interest on FDs and savings accounts. On the other hand, home loans, car loans, etc are now quite affordable than earlier.

However, due to the security quotient of FDs, investors are common people who are still not rejecting the investment tool. Inflation is standing at a high level, and the low-interest rate does not give much profit. But to keep the money safe and to have an assured income after a certain period (fixed at the time of investment), people are searching banks that are offering better interest rates than others. In reality, private banks are giving better interest rates than public banks.

Here are some private banks' names and rates are enlisted that are offering higher interest rates (for the public), than others. The investors need to open an account under the bank, to have an FD at 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 senior citizens, but that will depend on the banks.

Among the top private banks, Axis Bank is offering the highest rate, till now. 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 a 5.75% interest rate on the money for deposits less than Rs. 5 crore, which is quite high compared to the market rates. However, keeping an FD account in any bank does not make major differences, for up to Rs. 5 lakhs. The central bank, RBI secures that amount of money for an FD. So, there will not be a chance that the money will face losses. The above-mentioned banks are RBI-registered reputed banks. So, for better interest rates and assured income, one can open an FD account in any of those banks.