Top 5 Private Sector Banks Offering Highest Returns On FDs In The Market

Published: Sunday, February 13, 2022, 9:05 [IST]

At its bi-monthly monetary policy review on February 10, 2022, the Reserve Bank of India (RBI) decided to hold the repo and reverse repo rates steady. As a result, the repo and reverse rates are still at 4% and 3.35 percent, respectively. As a response, banks may not cut fixed deposit (FD) interest rates further. Amid strong inflation of 5.59 percent in December 2021, fixed deposit holders are receiving negative returns on their accounts, making achieving real returns challenging. For them, we have selected the top 5 private sector banks that will provide inflation-beating returns in the medium to long term in 2022. The top five private sector banks were chosen solely on the basis of interest rates, not market capitalization.

Yes Bank

Yes Bank is giving an inflation-beating return of 6.00% - 6.25% to the general public and 6.50% - 7.00% to senior citizens on deposits maturing in 18 months to 10 years. The bank's interest rates were last amended on January 4, 2022, and the current FD rates are as follows.

Tenure	Regular Interest rates p.a.	Senior citizens rates p.a.
7 to 14 days	3.25%	3.75%
15 to 45 days	3.50%	4.00%
46 to 90 days	4.00%	4.50%
3 months to < 6 months	4.50%	5.00%
6 months to < 9 months	4.75%	5.25%
9 months to < 1 year	5.00%	5.50%
1 Year < 18 months	5.75%	6.25%
18 Months to < 3 years	6.00%	6.50%
3 Years to <= 10 years	6.25%	7.00%
Source: Yes Bank

IndusInd Bank

IndusInd Bank is one of our top five picks for offering the highest interest rates on FDs in the sector. On deposits maturing in 1 year to 61 months, the bank is currently paying an inflation-beating return of 6.00 percent to the general public and 6.50 percent to senior citizens. The bank's fixed deposit interest rates were last amended on July 23, 2021, and the current rates are as follows.

Tenure	Regular Interest rates p.a.	Senior citizens rates p.a.
7 days to 14 days	2.5	3
15 days to 30 days	2.75	3.25
31 days to 45 days	3	3.5
46 days to 60 days	3.25	3.75
61 days to 90 days	3.4	3.9
91 days to 120 days	3.75	4.25
121 days to 180 days	4.25	4.75
181 days to 210 days	4.6	5.1
211 days to 269 days	4.75	5.25
270 days to 354 days	5.5	6
355 days to 364 days	5.5	6
1 Year to below 1 Year 6 Months	6	6.5
1 Year 6 Months to below 1 Year 7 Months	6	6.5
1 Year 7 Months to below 2 Years	6	6.5
2 years to below 2 years 6 Months	6	6.5
2 years 6 Months to below 2 years 9 Months	6	6.5
2 years 9 months upto 3 years	6	6.5
Above 3 years upto 61 months	6	6.5
61 month and above	5.5	6
Indus Tax Saver Scheme (5 years)	6	6.5
Source: IndusInd Bank

RBL Bank

RBL Bank has recently revised its interest rates on fixed deposits on 3rd February 2022. Following the modification, the bank now offers inflation-beating returns on deposits maturing in 12 to 60 months 1 day.

Tenure	Regular Interest rates p.a.	Senior citizens rates p.a.
7 days to 14 days	3.25%	3.75%
15 days to 45 days	3.75%	4.25%
46 days to 90 days	4.00%	4.50%
91 days to 180 days	4.50%	5.00%
181 days to 240 days	5.00%	5.50%
241 days to 364 days	5.25%	5.75%
12 months to less than 24 months	6.25%	6.75%
24 months to less than 36 months	6.50%	7.00%
36 months to less than 60 months	6.30%	6.80%
60 months to 60 months 1 day	6.30%	6.80%
60 months 2 days to less than 120 months	5.75%	6.25%
120 months to 240 months	5.75%	6.25%
Tax Savings Fixed Deposit (60 months)	6.30%	6.80%
Source: RBL Bank

Bandhan Bank

Bandhan Bank is providing the highest and inflation-beating return of 6.25 percent to the general public and 6.75 percent to senior citizens on retail term deposits of less than Rs 2 Cr maturing in 2 years to less than 5 years. The bank's interest rates were last amended on January 12, 2022, and the current rates on FDs are displayed below.

Tenure	Regular Interest rates p.a.	Senior citizens rates p.a.
7 days to 14 days	3.00%	3.75%
15 days to 30 days	3.00%	3.75%
31 days to Less than 2 months	3.50%	4.25%
2 months to less than 3 months	3.50%	4.25%
3 months to less than 6 months	3.50%	4.25%
6 months to less than 1 year	4.50%	5.25%
1 year to 18 months	5.25%	6.00%
Above 18 months to less than 2 years	5.25%	6.00%
2 years to less than 3 years	6.25%	7.00%
3 years to less than 5 years	6.25%	7.00%
5 years to up to 10 years	5.60%	6.35%
Source: Bandhan Bank

IDFC First Bank

IDFC First Bank is offering the highest interest rate of 6.25% to the general public and 6.75% to senior citizens on deposits maturing in 3 years 1 day - 5 years. The bank is offering the following interest rates effective as of January 21, 2022 on domestic deposits of less than Rs 2 Cr.

Tenure	Regular Interest rates p.a.	Senior citizens rates p.a.
7 - 14 days	2.50%	3.00%
15 - 29 days	2.50%	3.00%
30 - 45 days	3.00%	3.50%
46 - 90 days	3.00%	3.50%
91 - 180 days	3.50%	4.00%
181 days - less than 1 year	4.75%	5.25%
1 year - 2 years	5.75%	6.25%
2 years 1 day - 3 years	6.00%	6.50%
3 years 1 day - 5 years	6.25%	6.75%
5 years 1 day - 10 years	6.00%	6.50%
Source: IDFC First Bank