4 Best Safe Bank Fixed Deposits With 1-2 Years Tenure

Bank interest rates are rising and its time to look at deposits that offer good interest rates. If you are a short-term investor there are a number of options. Here are a few bank deposits that offer good interest rates and are safe on a 1-2 year tenure of deposits.

Union Bank of India700-days fixed deposits

Union Bank of India offers an interest rate of 7.25% on deposits of 700-days, which is the best that it gets from a government owned bank on regular deposits. An 800-day deposit fetches an interest rate of 7.35%, but, then this deposits go beyond the 2-year tenure. Being a government of India owned enterprise the interest rates offered by the bank are fantastic. Interestingly, the website of the bank does not segregate senior citizens. This means there could be one set of interest rates for both general public and senior citizens. We suggest that investors look to the longer term tenure of deposits.

IndusInd Bank Bank Fixed Deposits

If you are looking at a shorter-term tenure of 1-2 years, the IndusInd Bank Fds offer good interest rates. A 1 Year 6-Months to below 1-Year 7 Months deposits offer you an interest rate of 7%, while for senior citizens the deposit rates are 7.5%. If you are looking at slightly enhanced tenures from 1 year 7 months to 2-years the interest rates again is 7%, while for senior citizens the interest rates are 7.5%. The deposits are relatively safe, though we advocate that investors should invest in the deposits for the more long-term.

Canara Bank FDs

Canara Bank has a 666 days deposits, which is slightly more than 22-months where the bank offers an interest rate of 7% for regular deposits and 7.5% for senior citizens. Investors willing to invest in these deposits can also get safety given that Canara Bank is a government of Indian owned enterprise. This is probably the best that it can get from a Government owned bank. We believe that interest rates are headed slightly higher by around 25 basis points, after which peak interest rates would have evolved. Beyond another 25 basis points hike by the RBI, we do not think there would be further hikes.

IDFC First Bank Fixed Deposits

A 1-2 year deposit can fetch very good interest rates at IDFC First. In fact, the bank offers an interest rate of 7.5% on a 21-month deposits, which is slightly under 2-years. If you look at the longer term tenure of even 3-years, the deposits offer a very good interest rate of 7.5%. For senior citizens the interest rates go to as high as 8%, which is very good. In fact, even the 2-3 year deposits of the bank offer similar interest rates. Overall, the bank interest rates are impressive and investors would do well to place money in the same.