Fixed deposit rates are rising after the Reserve Bank of India hiked the repo rate. Many banks have recently increased their rates for different tenures. Fixed deposits (FDs) are a popular saving instrument, especially when investors seek capital protection for their funds. They come in multiple tenure options ranging from 7 days to 10 years. Although the rates are rising, FDs may still not provide inflation-beating returns. However, you can take steps that can help you maximise your returns. Laddering your FDs is a good way to maximise your returns. You have to spread your funds in FDs of different tenures. Once an FD matures, you can reinvest it to create an investment loop.
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A few private and small finance banks are still offering above-average FD returns. Investors could consider investing a portion of their funds in FDs of these banks after a thorough risk assessment and if doing so is in line with their returns expectations and risk appetite.
So, if you’re planning to open an FD account, here is a list of 10 banks currently offering the country’s highest interest rates for FDs with tenures between 3 to 5 years.
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| Bank Name | Highest Advertised Interest Rate On 3 to 5 Years FDs |
| Fincare Small Finance Bank | 7.5 |
| Jana Small Finance Bank | 7.35 |
| Ujjivan Small Finance Bank | 7.2 |
| Bandhan Bank | 7 |
| AU Small Finance Bank | 6.9 |
| Suryoday Small Finance Bank | 6.75 |
| IndusInd Bank | 6.75 |
| Yes Bank | 6.75 |
| DCB Bank | 6.6 |
| RBL Bank | 6.55 |
Disclaimer: Data as on respective banks’ websites on September 2, 2022. All rates for normal FDs amounting to less than Rs.1 crore.
