Top Private Sector Banks Providing Good Returns Across 1 To 5 Year FDs

Updated: Friday, March 5, 2021, 16:18 [IST]

When it comes to low-risk investment vehicles with a lock-in period and assured returns apart from post office savings schemes, fixed deposits are the first that most of the risk-averse investors consider including senior citizens. For many people, they are a common investing choice because the returns are assured and even provide tax benefits if deposits have been made for 5 years. You can select the period based on your liquidity needs. If you're thinking of investing in fixed deposits, check out the new interest rates for deposit amount of less than Rs 2 Cr from private banks for a tenure of 1 to 5 years respectively.

1 Year FD Rates

Banks	1 year FD rates in % for non-senior citizens	1 year FD rates in % for senior citizens
DCB Bank	5.95	6.45
Yes Bank	5.75	6.25
TNSC Bank	5.75	5.75
RBL Bank	5.75	6.25
IndusInd Bank	5.75	6.25
Bandhan Bank	5.25	6
Tamilnad Mercantile Bank	5.25	5.25
Karnataka Bank	5.2	5.6
Axis Bank	5.15	5.4
Karur Vysya Bank	5	5
City Union Bank	5	5
South Indian Bank	4.75	5.25
Dhanlaxmi Bank	4.5	5
J & K Bank	4.5	5
Kotak Bank	4.4	4.4
ICICI Bank	4.4	4.9
HDFC Bank	4.4	4.9
Federal Bank	4.4	4.9

1 to 2 Year FD Rates

Banks	1-2 year FD rates in % for non-senior citizens	1-2 year FD rates in % for senior citizens
DCB Bank	6.5	7
RBL Bank	6.5	7
IndusInd Bank	6.5	7
Yes Bank	6.25	6.75
TNSC Bank	6	6.5
Tamilnad Mercantile Bank	5.75	6.25
City Union Bank	5.75	6.25
Bandhan Bank	5.75	6.5
Karur Vysya Bank	5.5	6
South Indian Bank	5.4	5.9
Dhanlaxmi Bank	5.3	5.8
Karnataka Bank	5.3	5.7
Axis Bank	5.25	5.9
J & K Bank	5.1	5.6
Federal Bank	5.1	5.6
ICICI Bank	5	5.5
Kotak Bank	5	5
HDFC Bank	4.9	5.4

2 to 3 Year FD Rates

Banks	2-3 year FD rates in % for non-senior citizens	2-3 year FD rates in % for senior citizens
Yes Bank	6.5	7
RBL Bank	6.5	7
DCB Bank	6.5	7
IndusInd Bank	6.5	7
TNSC Bank	5.85	6.35
Bandhan Bank	5.75	6.5
City Union Bank	5.75	6.25
Tamilnad Mercantile Bank	5.65	6.15
Karnataka Bank	5.55	6.95
Karur Vysya Bank	5.5	6
South Indian Bank	5.4	5.9
Axis Bank	5.4	5.9
Dhanlaxmi Bank	5.4	5.9
Federal Bank	5.35	5.85
J & K Bank	5.2	5.7
HDFC Bank	5.15	5.65
ICICI Bank	5.15	5.65
Kotak Bank	5	5

3 to 5 Year FD Rates

Banks	3-5 year FD rates in % for non-senior citizens	3-5 year FD rates in % for senior citizens
DCB Bank	6.75	7.25
RBL Bank	6.25	6.75
Yes Bank	6.75	7.5
IndusInd Bank	6.5	7
TNSC Bank	6	6
Karur Vysya Bank	5.75	6.15
South Indian Bank	5.65	6.15
Karnataka Bank	5.55	6.95
Axis Bank	5.5	6
Bandhan Bank	5.5	6.25
City Union Bank	5.5	6
Dhanlaxmi Bank	5.5	6
Federal Bank	5.5	6
Tamilnad Mercantile Bank	5.5	5.5
ICICI Bank	5.35	5.85
HDFC Bank	5.3	5.8
J & K Bank	5.3	5.8
Kotak Bank	5.3	5.3

Fixed Deposit Benefits For Senior Citizens

Senior citizens, identified as those who are 60 years or older are eligible for a senior citizens' fixed deposit account of a bank or NBFC. They must have proof of age, as well as other required documents, in order to apply for the same. Banks, and also Non-Banking Financial Companies (NBFCs), grant senior citizens additional FD rates ranging from 0.25 per cent to 1.00 per cent respectively. Senior citizens' tenure on FDs usually ranges from 7 to 10 years. They can also claim 80C deductions for up to Rs. 1.5 lakh if they invest for a term of 5 years in a fixed deposit. When it comes to TDS banks and NBFCs subtract tax from accrued interest. TDS is levied as interest accrues, i.e. monthly, quarterly, half-yearly, or yearly in the case of cumulative interest payments. If earned interest crosses Rs. 50,000 for senior citizens, tax is deducted at a rate of 10%, compared to Rs. 40,000 for non-senior citizens.

Note

In her Budget 2020 speech, Finance Minister Nirmala Sitharaman announced raising the insurance amount for depositors in the event of bank default. The RBI had announced a raise in insurance cover to Rs 5 lakh per depositor, up from Rs 1 lakh previously. The scheme covers all forms of bank deposits, including savings, fixed, and recurring. The Deposit Insurance and Credit Guarantee Corporation, a wholly-owned subsidiary of the Reserve Bank of India, offers a Rs 5 lakh cap under this scheme, which includes both principal and interest.