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These 4 Banks Offering Highest Interest Rates On One-Year To Two-Year FDs

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A few days back Reserve Bank of India (RBI) left everyone surprised when it held an unscheduled meeting on May 4 and announced a 40-basis-point hike in the Repo Rate. Soon after the Central Bank's decision to hike the Repo Rate, banks also decided to raise the rate of interest on Fixed Deposits (FDs). When repo rates are hiked, it can make savings attractive as customers can fetch better interest rates on their FDs. Fixed Deposits have emerged as one of the most famous tools to save money. Fixed deposits are not only safe investment option but it can also offer attractive returns. You do not have to toil hard to open your FDs with banks.

 
These 4 Banks Offering Highest Interest Rates On One-Year To Two-Year FDs

What is FD
In Fixed Deposit, you are supposed to invest a lump sum with your respective bank for a particular fixed period at an agreed interest rate. When the tenure comes to an end, you become eligible to get the invested amount along with compound interest. Fixed Deposits are also known as term deposits.

As FDs have emerged a safe investment option, a large number of people in India prefer to invest their money in bank FDs. The reason why FDs are safe and secure investment is because you can get guaranteed returns. The returns on FDs remain fixed when you open an account. If the interest rate dips after you have opened an FD account, you shall remain eligible to receive the interest rate decided at the beginning. Experts feel FDs are much safe than other investments like equity as markets may face fluctuations and volatility.

You can do an FD for flexible periods that may range from a minimum 7 days to maximum 10 years as per your choice.

There are some banks that have been offering highest interest rates on FDs and you can begin your investment with them. Below are banks that you may consider:

IndusInd Bank: The bank offers an interest rate of 6.00% for FDs maturing in 1 year to below 1 year 6 months. IndusInd Bank offers an interest rate of 6.50% for FDs for a tenure of 2 years.

RBL: You can open your Fixed Deposit account with RBL to enjoy some high interest rates on FDs for the tenure of 12 months to below 24 months. The bank offers interest rate of 6.25%. The bank offers an interest rate of 6.50% on FDs for 2 year period.

 

Bandhan Bank: The bank offers an interest rate of 5.75 % on FDs for a tenure of 1 year. The bank will fetch you an interest rate of 6.25% for FDs of two-year term.
IDFC Bank: You can also avail an interest rate of 5.75 % with this bank for FDs for a period of 1 year. It offers similar interest rates for FDs of two-year tenure.

IDFC Bank: You can also avail an interest rate of 5.75 % with this bank for FDs for a period of 1 year. It offers similar interest rates for FDs of two-year tenure.

Story first published: Saturday, May 14, 2022, 16:49 [IST]
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