Top 5 Banks With Higher Interest Rates On 1-2 Year Fixed Deposits

For investors who do not want to take a risk or do not have much exposure to market-based returns, fixed deposit (FD) investments are the most secure bet. Due to the guaranteed interest rates across the maturity period, a flexible tenure which generally ranges from 7 days to 5 years, high liquidity, DICGC insurance cover up to Rs 5 lakhs, additional interest rates to senior citizens, overdraft facility and so on, a fixed deposit investment is more appealing for investors who have both short-term and long-term goals. And when it comes to short-term goals of the customers, some banks are now currently offering higher interest rates than small savings schemes on short-term fixed deposits. So if you are an investor with a risk-averse attitude and want to invest for short-term, then here are the top 5 banks that are currently providing higher interest rates in the market on 1-2 year fixed deposits but for a deposit amount of less than Rs 2 Cr.

1-2 Year Fixed Deposits of Small Finance Banks

Generally, small finance banks provide higher and decent returns on fixed deposits than public and private sector banks. Here are the top 5 small finance banks with higher interest rates on 1-2 year fixed deposits.

Banks	1-year FD rates for regular customers	1-year FD rates for senior citizens	2-year FD rates for regular customers	2-year FD rates for senior citizens	W.e.f.
Utkarsh Small Finance Bank	6.75%	7.25%	6.75%	7.25%	19.10.2020
Ujjivan Small Finance Bank	6.50%	7.00%	6.50%	7.00%	05.03.2021
ESAF Small Finance Bank	6.50%	7.00%	6.00%	6.50%	02.05.2021
Equitas Small Finance Bank	6.35%	6.85%	6.25%	6.75%	01.06.2021
Jana Small Finance Bank	6.25%	6.75%	6.50%	7.00%	07.05.2021
Source: Bank Websites

1-2 Year Fixed Deposits of Private Banks

For a deposit tenure of 1-2 years, here are the top private sector banks offering higher returns on 1-2 year fixed deposits.

Banks	1-year FD rates for regular customers	1-year FD rates for senior citizens	2-year FD rates for regular customers	2-year FD rates for senior citizens	W.e.f.
RBL Bank	6.10%	6.60%	6.10%	6.60%	01.06.2021
Yes Bank	6.00%	6.50%	6.00%	6.50%	03.06.2021
IndusInd Bank	6.00%	6.50%	6.00%	6.50%	04.06.2021
DCB Bank	5.70%	6.20%	6.00%	6.50%	15.05.2021
Karur Vysya Bank	5.00%	6.00%	5.50%	6.00%	11.01.2021
Source: Bank Websites

1-2 Year Fixed Deposits of Public Sector Banks

On fixed deposits for 1-2 years, these public sector banks are currently promising higher interest rates.

Banks	1-year FD rates for regular customers	1-year FD rates for senior citizens	2-year FD rates for regular customers	2-year FD rates for senior citizens	W.e.f.
Union Bank	5.25%	5.75%	5.30%	5.80%	15.12.2020
Canara Bank	5.20%	5.70%	5.20%	5.70%	08.02.2021
Punjab & Sind Bank	5.15%	5.65%	5.15%	5.65%	16.05.2021
Bank of India	4.50%	5.00%	5.25%	5.75%	01.06.2021
State Bank of India	4.40%	4.90%	5.00%	5.50%	08.01.2021
Source: Bank Websites