Despite the fluctuations in the financial markets, fixed deposits (FDs) continue to be a popular choice for cautious investors in India who value stability and reliable returns. Whether you are looking for a short-term allocation of funds or planning a long-term investment strategy, there are many financial institutions offering attractive fixed deposit interest rates to meet your requirements.
In the investment arena, FDs play a crucial role in the financial planning of many individuals in India, offering stable and predictable investment returns. The inherent value of a fixed deposit lies in its ability to generate predetermined returns while safeguarding the initial investment amount. It is estimated that fixed-income investments make up around 70% of all investment assets in India, underscoring their widespread appeal, significance in financial planning, and the advantages they offer.
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Small Finance Bank Interest Rates on Fixed Deposits
> Northeast Small Finance Bank offers a high interest rate of 9% on Fixed Deposits, for investment amounts less than Rs 3 crore.
> Suryodaya Small Finance Bank provides an interest rate of 8.6% on Fixed Deposits.
> Utkarsh Small Finance Bank offers an interest rate of 8.5% on Fixed Deposits.
> Jan Small Finance Bank provides a competitive interest rate of 8.25% on Fixed Deposits with a three-year tenure.
> Unity Small Finance Bank offers a favorable interest rate of 8.15% on Fixed Deposits.
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Private Bank Interest rates on FDs
Bandhan Bank tops the list of private banks for offering a competitive return of 8.05% on 1-year fixed deposits, making it a top choice for short-term investment. RBL Bank also impresses with an 8.10% return on FDs with a 500-day tenure, presenting attractive options for those seeking medium-term investment opportunities.
While small finance banks typically lead in offering high fixed deposit rates, private sector banks like ICICI Bank, HDFC Bank, and Axis Bank remain popular among investors due to their strong reputations, extensive branch networks, and reliable customer service. These banks maintain competitive FD rates while prioritising stability and convenience.
For example, ICICI Bank offers an interest rate of 7.25% for tenures ranging from 15 months to 2 years, and HDFC Bank provides 7.40% on FDs with a tenure of 4 years and 7 months.
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Public Sector Banks FD schemes
Public sector banks like Bank of Baroda and Central Bank of India typically provide competitive interest rates, which are usually lower than those offered by private banks. For example, Bank of Baroda’s 400-day Utsav scheme currently offers an interest rate of 7.30%, while State Bank of India (SBI) offers a rate of 7.25% for fixed deposits with a tenure of 444 days.
| Banks | Highest FD rate | 1-year | 3-year | 5-year | Additionalinterest ratefor senior citizens |
| Unity Small Finance Bank | 9.00 | 7.85 | 8.15 | 8.15 | 0.50 |
| North East Small Finance Bank | 9.00 | 7.00 | 9.00 | 6.25 | 0.50 |
| Suryoday Small Finance Bank | 8.60 | 8.05 | 8.60 | 8.25 | 0.50 |
| Shivalik Small Finance Bank | 8.55 | 6.00 | 7.50 | 6.50 | 0.50 |
| Utkarsh Small Finance Bank | 8.50 | 8.00 | 8.50 | 7.75 | 0.60 |
| Jana Small Finance Bank | 8.25 | 8.25 | 8.25 | 8.20 | 0.50 |
| Ujjivan Small Finance Bank | 8.25 | 8.25 | 7.20 | 7.20 | 0.50 |
| Equitas Small Finance Bank | 8.25 | 8.20 | 8.00 | 7.25 | 0.50 |
| SBM Bank | 8.25 | 7.05 | 7.30 | 7.75 | 0.50 |
| RBL Bank | 8.10 | 7.50 | 7.50 | 7.10 | 0.50 |
| DCB Bank | 8.05 | 7.10 | 7.55 | 7.40 | 0.50 |
| Bandhan Bank | 8.05 | 8.05 | 7.25 | 5.85 | 0.50-0.75 |
| AU Small Finance Bank | 8.00 | 7.25 | 7.50 | 7.25 | 0.50 |
