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2 Large Private Banks That Offer The Best Interest Rates On Fixed Deposits

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The most trusted saving destination is a bank account, particularly the Fixed Deposit (FD). The bank that offers the highest interest rate on the deposits whether it's saving or FDs is the more searched destination. Out of these two, FDs are considered the safest saving option as it comes with a low market risk that also offers a high return on the deposit.

 

Interest rates vary based on the bank and customers such as senior citizens and the general public. FDs are great when it comes to tax savings.

2 Large Private Banks That Offer The Best Interest Rates On Fixed Deposits

Yes Bank and IndusInd Bank offer the best rates

Yes Bank and IndusInd Bank are two banks that offer the best interest rates to their customers on their Fixed Deposits. Both the banks are private sector banks and have a wide reach in the country. When compared to larger peers from the private sector or government sector, the interest rates being offered by these banks is a good 0.75 to 1% higher.

We have not considered the small finance banks or cooperative banks, while making a comparison.

Yes Bank offers 3.25% to 6.50% and 3.75% to 7.25% to general and senior citizens respectively. Followed by Yes Bank, IndusInd Bank offers 2.50% to 5.50% and 3.00% to 6.00% on FDs to general and senior citizens respectively. The tenure of FD in Yes bank varies from 5 to 10 years. Whereas, compared to the other banks, the rate of interest by these two banks is attractive, which makes them a good choice for savings.

 

It is always important to compare the rate of interest before making any kind of saving decision in banks. Saving in FDs is now considered a traditional way of investment but it is still a hot and safest destination for many.

Invest for shorter term tenures in bank fixed deposits

As there is a possibility that interest rates could go higher, we recommend that investors should take the short-term tenure for bank deposits. Globally, there are risks to inflation and many central banks around the world are looking at the possibility of hiking interest rates. Therefore, investors should look at short term tenure for fixed deposits. There is the possibility that even the Reserve Bank of India could hike interest rates considering that inflation in India has begun to trend higher.

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