FDs are among the country's most common investment resources notably among risk-averse investors such as senior citizens, who mostly rely on their FDs' interest income for their regular livelihood. The falling rates, thus, are a big reason of concern for them. The announcement of the Reserve Bank of India to hold the repo rate steady at a record low of 4% due to the economic effect of the Covid-19 pandemic has also led to reducing the rate cut on FDs of the bank. In addition, as per the current patterns, most of the banks are providing FD interest rates for non-senior citizens in the range of 3 per cent to 5.4 per cent per annum based on considerations such as, among other aspects, deposit amount and maturity period. Senior citizens typically receive competitive interest rates of around 0.5 per cent over and above the interest rates provided to the general public.
Below are some banks including some private and small finance banks that are currently providing the best interest rates across applicable maturity periods. Remember, all the rates listed below are for regular interest rates for fixed deposits less than Rs 1 crore for the general public.
|Sr No.||Banks||Tenure||ROI (in % p.a.)|
|1||Jana Small Finance Bank||2 to 3 years||7.5|
|2||Suryoday Small Finance Bank||3 to 5 years||7.5|
|3||IndusInd Bank||1 to 3 years||7|
|4||Equitas Small Finance Bank||2 to 3 years||7|
|5||DCB Bank||2 to 5 years||6.95|
|6||RBL Bank||2 to 3 years||6.95|
|7||Yes Bank||2 to 5 years||6.75|
|8||AU Small Finance Bank||2 to 3 years||6.75|
|9||Ujjivan Small Finance Bank||1 to 2 years||6.5|
|10||Fincare Small Finance Bank||2 to 3 years||6.5|
Offering guaranteed returns, investment flexibility and high liquidity, bank deposits traditionally play an incredibly influential job in myriad investors' investment decisions. That being said, at the time when the country is not yet completely recovered from the financial impact of the pandemic, it can be claimed that lower interest rates should not be the only consideration for the risk-averse investors to opt FDs. However, investors should also perceive depositing a portion of their funds in FDs with a few banks stated above, which are after thorough research and rigorous risk analysis, are currently providing better returns than most other banks. As per their standards of returns, risk appetite and liquidity criteria, investors can also prefer investing in AAA-rated company FDs, post office savings schemes, PPF, and other secure investment vehicles in a diversified pattern to cherish good returns.