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5 Banks That Give You Returns Up To 7.50% On 1-2 Year Fixed Deposits
In comparison to a regular savings account, a fixed deposit (FD) is one of the best investment opportunities since it pays a higher rate of interest. For a set period of time, interest is paid against the deposited amount which is fixed across the chosen tenure and will not be affected by potential adjustments on rates by the bank or market fluctuations. The interest rate is determined by the type of lender, maturity period, and depositor, which can be either non-senior citizens or senior citizens. Interest rates are usually higher for senior citizens compared to the general public. While investing in fixed deposits the best benefits you bet beyond the interest rate is liquidity. You can quickly liquidate your FD to obtain funds in the event of an emergency. As a result, you can completely rely on returns in order to achieve your financial goals. Fixed deposit schemes have a variety of maturity options that investors can choose which is most convenient for them. In terms of duration, one can invest in an FD for a period ranging from seven days to ten years. So if you want to invest in fixed deposits for a period of 1 to 2 years to meet your short-term goals, check the top 5 banks mentioned below for the best interest rates.
1 Year FD
The following is a chart of the top 5 banks with the highest 1-year FD rates after the most recent adjustment.
| Sr No. | Bank | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|---|
| 1 | Shriam City Union Finance | 7.25% | 7.65% | April 1, 2021 |
| 2 | Utkarsh Small Finance Bank | 6.75% | 7.25% | October 19, 2020 |
| 3 | ESAF Small Finance Bank | 6.50% | 7.00% | May 2, 2021 |
| 4 | Ujjivan Small Finance Bank | 6.50% | 6.50% | March 5, 2021 |
| 5 | IndusInd Bank | 6.50% | 7.00% | April 26, 2021 |
| Source: Bank Website |
Why Should You Invest In Fixed Deposits?
2 Year FD
The top 5 banks with the highest 2-year FD rates after the latest revision are listed below:
| Sr No. | Bank | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|---|
| 1 | Shriam City Union Finance | 7.50% | 7.90% | April 1, 2021 |
| 2 | Utkarsh Small Finance Bank | 6.75% | 7.25% | October 19, 2020 |
| 3 | Suryoday Small Finance Bank | 6.75% | 7.25% | February 15, 2021 |
| 4 | IndusInd Bank | 6.50% | 7.00% | April 26, 2021 |
| 5 | Ujjivan Small Finance Bank | 6.50% | 6.50% | March 5, 2021 |
| Source: Bank Website |
Should you invest?
Based on the time period of your financial goal, you can categorise investments as short-term or long-term. A short-term goal is usually one that requires an investment of less than three years. Paying for your child's school fees, having a down payment for a home loan or getting married are all examples of short-term goals. In this situation, you need to determine clearly when and how much money you need to finance your personal finance goals. As a result, you must schedule your investments in a risk-free investment vehicle so that you can easily liquidate it even at the time of emergencies. In this case, a bank FD will provide you with a guaranteed rate of interest, meet your liquidity needs, assist you with emergency management, and help you achieve your short-term financial objectives. As a part of your asset allocation and diversification strategy an investment in fixed deposit for short-term needs can be a good bet here. It is important to note here especially for senior citizens that subject to certain terms and conditions, all bank deposits are insured by the Deposit Insurance and Credit Guarantee Corporation of India (DICGC) insurance scheme. All deposits, including savings, fixed, recurring and others, are insured by the DICGC which is nothing but a subsidiary of RBI. Any depositor in a bank is guaranteed for both principal and interest up to a limit of Rs. 5 lakh. Keeping this in mind, investing in an FD scheme of any of the above-mentioned banks will help you secure your capital, which is an advantage that goes beyond interest rates.
