Many private and government banks are offering fairly high interest rates for general citizens investing in FDs of amounts less than Rs 3 crore. In India, fixed deposits are a popular choice to save money. They are often regarded as a dependable way to grow your investments, offering guaranteed returns. Unlike stock market investments, which are influenced by market fluctuations, fixed deposits provide a sense of stability and financial security.
The following banks are offering high interest rates on private and government bank FD with five-year tenures.
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FD interest rate up to 7.4%
DCB Bank is offering a 7.4% interest rate to general citizens on its FDs maturing in five years.
FD interest rate up to 7.25%
IndusInd Bank is offering a 7.25% interest rate to general citizens on its FDs maturing in five years.
YES Bank is also offering a 7.25% interest rate to general citizens on its FDs maturing in five years.
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Table
| Bank name | Interest rate |
| DCB Bank | 7.40% |
| IndusInd Bank | 7.25% |
| YES Bank | 7.25% |
| RBL Bank | 7.10% |
| Federal Bank | 7.10% |
| Axis Bank | 7% |
| Karur Vysya Bank | 7% |
| HDFC Bank | 7% |
| ICICI Bank | 7% |
| Bank of Baroda | 6.80% |
Source: paisabazaar.com as of December 18, 2024
FD interest rate up to 7.1%
RBL Bank is offering an interest rate of 7.1% to general citizens on its FDs maturing in five years.
Federal Bank is offering a 7.1% interest rate to general citizens on its FDs maturing in five years.
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FD interest rate up to 7% FD interest rate
Axis Bank is offering a 7% interest rate to general citizens on its FDs maturing in five years.
Karur Vysya Bank is offering a 7% interest rate to general citizens on its FDs maturing in five years.
HDFC Bank is offering a 7% interest rate to general citizens on its FDs maturing in five years.
ICICI Bank is offering an interest of 7% to general citizens on its FDs maturing in five years.
FD interest rate up to 6.8% FD interest rate
Bank of Baroda is offering a 6.8% interest rate to general citizens on its FDs maturing in five years.
Premature withdrawal of FD
According to Bank of Baroda website as of November 24, 2024, “No penalty for premature payment will be levied in case of premature payment of deposits up to Rs 5 lacs provided it remained with the bank for a minimum period of 12 months. Interest should be paid after deducting a penalty of 1% from such applicable rate or the contracted rate whichever is lower in the cases which are subject to charging penalty. Condition for premature closure of Deposits of Rs 1 crore and above i.e. 31 days prior notice, and Penalty @1.5% on applicable rate of interest for the period for which the deposit has remained with the bank.”
How is interest on FDs calculated?
Bank of Baroda said on its website: “In terms of Reserve Bank of India directives, interest shall be calculated at quarterly compounding intervals on Term Deposits and paid at the rate decided by the Bank depending upon the period of deposits. In case of Monthly Deposit Scheme, the interest shall be calculated for the quarter on compounding basis and paid monthly at discounted value. The interest on Term deposits is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks’ Association, accordingly, the Bank has adopted the following methodologyIn all cases of Domestic Term Deposits (period of deposit more than a year) where the terminal quarter is incomplete, interest should be calculated for complete quarter and the actual number of days, reckoning the year 365/366 days viz the calculation of interest on such deposits should be in order of completed quarters and days.”
