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Top 10 Banks With Higher Interest Rates On 2-3 Year Fixed Deposits

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FDs are among the most prominent investment vehicles among the risk-averse investors due to their guaranteed returns, varied tenure choices ranging from 7 to 10 years, high liquidity and tax-saving options. However, due to the present low-interest rate environment, bank fixed deposits have become a source of concern for many risk-averse investors, including elderly citizens, who depend on their FD returns not only to achieve their financial goals but also to create wealth. However, a handful of private and small finance banks are still giving above-average FD rates amid the current rate cut on FD scenario. Therefore, if you have medium-term goals, here's a list of ten banks that are presently giving the highest interest rates on FDs with terms of two to three years.

 

2 Year FD Interest Rates

2 Year FD Interest Rates

Below are the top 10 banks which are currently promising higher interest rates on 2-year fixed deposits for a deposit amount of less than Rs 2 Cr.

Small Finance BanksRegular FD RatesSenior Citizen FD RatesW.e.f.
Utkarsh Small Finance Bank 6.75% 7.25% 19.10.2020
Suryoday Small Finance Bank 6.50% 6.50% 21.06.2021
Jana Small Finance Bank 6.50% 7.00% 07.05.2021
Ujjivan Small Finance Bank 6.50% 7.00% 05.03.2021
AU Small Finance Bank 6.25% 6.75% 01.04.2021
Private Banks Regular FD Rates Senior Citizen FD Rates W.e.f.
RBL Bank 6.10% 6.60% 01.06.2021
Yes Bank 6.00% 6.50% 03.06.2021
IndusInd Bank 6.00% 6.50% 04.06.2021
DCB Bank 6.00% 6.50% 15.05.2021
Karur Vysya Bank 5.50% 6.00% 11.01.2021
Source: Bank Websites

3-Year FD Interest Rates
 

3-Year FD Interest Rates

The top 10 banks now offering higher interest rates on 3-year fixed deposits for a deposit amount of less than Rs 2 crore are listed below.

Small Finance BanksRegular FD RatesSenior Citizen FD RatesW.e.f.
Utkarsh Small Finance Bank 6.75% 7.25% 19.10.2020
Ujjivan Small Finance Bank 6.75% 7.25% 15.05.2021
Jana Small Finance Bank 6.50% 7.00% 04.06.2021
AU Small Finance Bank 6.50% 7.00% 11.01.2021
Suryoday Small Finance Bank 6.25% 6.50% 03.06.2021
Private Banks Regular FD Rates Senior Citizen FD Rates W.e.f.
IndusInd Bank 6.50% 7.00% 04.06.2021
DCB Bank 6.50% 7.00% 15.05.2021
RBL Bank 6.10% 6.60% 01.06.2021
Yes Bank 6.00% 6.50% 03.06.2021
Karur Vysya Bank 5.50% 6.00% 11.01.2021
Source: Bank Websites

Conclusion

Conclusion

Bank fixed deposits (FDs) are often the first place of reference for investors with a low-risk profile and those looking to fulfil their both short-term and long-term goals with assured returns. One of the biggest advantages to investing in fixed deposits is that the interest rates on bank FDs are guaranteed until maturity, regardless of changes in the banks' FD card rates in the future. For example, if an investor opens a two-year bank fixed deposit at 6.75 per cent p.a., the interest rate will remain the same until the expiration of the two-year maturity period.

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India, covers fixed deposits made with scheduled banks (RBI). In the case of a bank collapse, the insurance policy covers cumulative bank deposits, which include fixed deposits, savings accounts, recurring deposits, and current accounts, of up to Rs 5 lakh per bank, per depositor. The above-listed banks with 2-3 year fixed deposits are currently providing much higher returns than that of small saving schemes and are also covered by DICGC. So if you are an investor with less exposure to mutual funds and market-based returns, then placing a fixed deposit in any of the above-discussed banks can be a good bet if you have a medium-term goal.

Read more about: fd fixed deposit investment
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