Top 10 Banks Promising Highest Returns On 1 To 2 Year Fixed Deposits

Fixed deposit (FD) investors are anticipating that interest rates would begin to climb, as the Reserve Bank of India (RBI) is expected to raise the status quo on key rates during its bi-monthly monetary policy review meeting on February 8-10, 2022. As a consequence, you should go for FDs that pay the highest interest rate on short-term deposits. When FD interest rates are predicted to rise, you can invest in 1 to 2 year FDs or multiple FDs with varying maturities to construct FD laddering to witness higher returns as well as liquidity at regular intervals. Some banks, such as SBI and HDFC, have already commenced raising interest rates on fixed deposits, and it is best not to lock in your money for a long run ahead of the policy meeting because interest rates are likely to rise. As a consequence, we've compiled a list of the top 10 private sector, public sector and small finance banks that are now giving the highest interest rates on 1 to 2 year FDs, which you should look at to plan your FD laddering strategy or just wait for interest rates to rise.

Top 10 Public Sector Banks With Highest Interest Rates On 1 To 2 Year Fixed Deposits

The top ten public sector banks with the highest interest rates on one- to two-year fixed deposits are shown below.

Sr No.	Banks	Regular Interest Rates (p.a.)	Senior Citizen Rates (p.a.)
1	Indian Overseas Bank	5.20%	5.70%
2	Union Bank of India	5.10%	5.60%
3	Punjab & Sind Bank	5.05%	5.55%
4	State Bank of India	5.00%	5.50%
5	Punjab National Bank	5.00%	5.50%
6	Canara Bank	5.00%	5.50%
7	Central Bank of India	5.00%	5.50%
8	Indian Bank	5.00%	5.50%
9	Bank of Baroda	5.00%	5.50%
10	Bank of India	5.00%	5.50%
Source: Bank Websites

Top 10 Private Sector Banks With Highest Interest Rates On 1 To 2 Year Fixed Deposits

The top ten private sector banks offering the highest one- to two-year fixed deposit interest rates are listed below.

Sr No.	Banks	Regular Interest Rates (p.a.)	Senior Citizen Rates (p.a.)
1	RBL Bank	6.25%	6.75%
2	IndusInd Bank	6.00%	6.50%
3	Yes Bank	5.75% to 6.00%	6.25% to 6.50%
4	IDFC First Bank	5.75%	6.25%
5	DCB Bank	5.55% to 5.95%	6.05% to 6.45%
6	Bandhan Bank	5.25%	6.00%
7	Tamilnad Mercantile Bank	5.25%	5.75%
8	IDBI Bank	5.15%	5.65%
9	Karur Vysya Bank	5.15%	5.65%
10	Dhanlaxmi Bank	5.15%	5.65%
Source: Bank Websites

Top 10 Small Finance Banks With Highest Interest Rates On 1 To 2 Year Fixed Deposits

Below is a list of the top small finance banks promising the highest interest rates on fixed deposits maturing in 1 to 2 years.

Sr No.	Banks	Regular Interest Rates (p.a.)	Senior Citizen Rates (p.a.)
1	Jana Small Finance Bank	6.75%	7.55%
2	North East Small Finance Bank	6.75%	7.25%
3	Utkarsh Small Finance Bank	6.50% to 6.75%	7.00% to 7.25%
4	ESAF Small Finance Bank	6.50% to 6.25%	7.00% to 6.75%
5	Ujjivan Small Finance Bank	6.50% to 6.60%	7.25% to 7.35%
6	Suryoday Small Finance Bank	6.50%	6.75%
7	AU Small Finance Bank	6.25% to 6.10%	6.75% to 6.60%
8	Equitas Small Finance Bank	6.00% to 6.25%	6.50% to 6.75%
9	Capital Small Finance Bank	6.00%	6.50%
10	Fincare Small Finance Bank	6.00%	6.50%
Source: Bank Websites