If you’re looking to invest in FDs, here are the 10 banks, including some private and small finance banks, which are currently offering the highest interest rates in the country.
The Reserve Bank of India’s decision to keep the repo rate unchanged at a record low of 4% necessitated by the economic impact of the Covid-19 pandemic has also contributed towards the lowering of bank’s fixed deposit interest rates.
FDs are one of the most popular investment instruments in our country, especially among risk-averse investors like senior citizens who often depend on the interest payouts of their FDs for their daily sustenance. The lowering rates, thus, is a major cause of concern for them.
In fact, according to the current trends, most of the banks are offering FD interest rates for non-senior citizen depositors in the range of 3%-5.4% p.a. depending on factors like investment amount and tenure, among other things. Senior citizen depositors usually get preferential interest rates by approximately 0.5% over and above the FD rates for non-senior citizen deposits, according to BankBazaar.
However, at a time when the country is yet to recover fully from the economic impact of the pandemic, it can be argued that the lowering interest rates shouldn’t alone be the reason for investors to completely look away from FDs. Bank deposits offer assured returns, investment clarity, forced savings, flexible tenures and high liquidity, and they usually play an extremely important role in the investment strategies of countless investors.
That said, investors can also consider investing a portion of their corpus in FDs with a few banks, mentioned below, that are currently offering higher returns than most other banks after due diligence and thorough risk assessment. They can also consider investing in AAA-rated company FDs, Voluntary Provident Fund, top-rated equity and debt funds, etc. according to their returns expectations, risk tolerance and liquidity requirements in a diversified manner for higher overall returns, as per BankBazaar.
So, if you’re looking to invest in FDs, here are the 10 banks, including some private and small finance banks, which are currently offering the highest interest rates in the country, alongside their applicable tenures. Do note, all the rates mentioned below are for normal fixed deposits (for non-senior citizen depositors) amounting to less than Rs 1 crore.
10 Banks Currently Offering the Highest FD Interest Rates
Disclaimer: Data as on respective banks’ websites on Dec 11, 2020. Only one entry (the highest advertised rate) has been considered for each of the banks. All interest rates are for a normal fixed deposit amounting below Rs 1 crore. Compiled by BankBazaar.com
