Bank interest rates have fallen a great deal. State Bank of India gives individuals a maximum interest rate of 5.40 per cent on their fixed deposits. Most of the government owned and large banks offer very poor interest rates, which are almost like State Bank of India. Here are a few banks banks that offer you a high interest rate on fixed deposits. However, we have not included some of the small finance banks in the list. All of these that are included are some of the larger private sector banks in the country.
Here is a list of 3 banks that you the best interest rates on fixed deposits (FDs)
IDFC First Bank
This bank was earlier known as IDFC Bank and was merged with First capital to form IDFC First Bank. Apart from the FD rates, the bank also offers high interest rates on its savings account, which can be as high as 7 per cent.
|180 days to less than 1 year||7%|
|1 year to 499 days||7.25%|
|501 days to 2 years||7.25%|
|2 to 5 years||7.25%|
The yields in this case can go higher, if you lock the deposit for a longer tenure. However, it may not be advisable to place the deposit for a long tenure, given the fact that interest rates could move in any direction in the coming years.
IndusInd Bank Fixed Deposits
|1 Year to 1 Year 2 Days||7%||7.12%|
|1 Year 3 Days to 1 Year 2 Months||7%||7.19%|
|Above 1 Year 2 Months to below 1 Year 6 Months||7%||7.25%|
The interest rates are pretty decent that is being offered by IndusInd Bank. Banks tend to deduct a TDS if the interest amount is more than Rs 10,000, so one needs to know that. The Bank has been advertising to allow investors to open an account online.
Yes Bank FDs
While we do understand that the Yes Bank has run into trouble in the past, the bank is now backed by the likes of State Bank of India. To that extent we not expect any massive problem in the foreseeable future. A 6-month to 1 year deposit at the bank gives an interest rate of 6.5 per cent, while a 2-3 year special deposit gives a rate of 7 per cent. This is more or less on par with what IDFC First and IndusInd Bank offer on their fixed deposits. The interest rates are still higher than what most banks offer in the country
In all of the above, one can open a fixed deposit online, which is safer now, given the Covid-19 situation.
About the author:
Sunil Fernandes has spent 25 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, mutual funds and tax planning.