3 Safe Large Private Bank Fixed Deposits (Fds) With Best Interest Rates To Invest

If you are looking for some good safe fixed deposits, we would suggest a combination from among top government owned banks and also private sector banks. Here are 3 banks that are safe to consider for fixed deposits and that offer high interest rates.

Yes Bank special tenure FD interest rates

State Bank of India currently holds 30% stake in Yes Bank, which gives comfort on the FD front. Under its special Fds, the interest rates are the highest for Yes Bank. In fact, the bank offers an interest rate of 7.5% for 30-months, taking the yield to as high as 7.71% on regular deposits. Senior citizens on the other hand are being offered an interest rate of 8%. If individuals are looking at tenure of 15-months than the interest rates are 7.25% on regular deposits and 7.75% for senior citizens. The special deposits have higher interest rates than the regular time periods.

HDFC Bank Fixed Deposits

One of the biggest reasons to recommend HDFC Bank Fds for our readers is that the longer term tenures have very good interest rates. Consider this: From 15 months until 10 years, the bank has a very uniform interest rate of 7% on regular deposits and 7.5% on senior citizen deposits. This means should interest rates fall, which they may in the next one year or so, you have locked money at high interest rates for a very long-term tenure. Senior citizens on a 5 to 10 year deposits get an interest rates of as high as 7.75%. This is one of the big reasons to recommend the HDFC Bank fixed deposits.

IDFC First Bank

This is another bank that is relatively safe among the top private sector banks in the country. The highest interest rates have been accorded for 18 months 1 day to 3-year tenure, which is 7.5% for regular deposits and 8% for senior citizens. This is for deposits under Rs 2 crores. We would strongly recommend that investors go for three years and not 18 months, as interest rates could drop, thus shielding yourself from that drop. These rates are for under Rs 2 crores. However, if you are likely to place deposits between Rs 2 crores to Rs 5 crores the interest rates move higher to 7.65% on deposits of 366 days to 399 days.

Some things to note about fixed deposits

It is important to note that there would be a TDS that would be applicable in case the deposit interest rates cross the Rs 10,000 mark. However, you can submit form 15g and form 15h as the case maybe to avoid a TDS on the deposits, in case you are not taxable on your total income. Some banks offer you loans of as much as 90% of the deposits. However, there is a charge that is applicable and we would not recommend you to go for a loan against FD, especially when interest rates are high. Overall, one should look for the tenure of the deposits and the interest rates. Ideally, given that interest rates have risen by almost 150 to 225 basis points on Fds, we would advocate looking to long-term tenure of Fds.