Bank Fixed Deposit Interest Rates in India

Bank Fixed Deposit Interest Rates: A Comprehensive Guide to Current Offers in India

Fixed Deposits (FDs) are one of the most popular investment choices for Indian savers who want a safe and steady return. With various banks offering different rates based on tenure, understanding the best offers can help you make a better financial decision. In this blog, we’ll take a look at the highest Fixed Deposit interest rates provided by both private, public, and small finance banks across different tenures: 1-year, 3-year, and 5-year.

 

What Are Fixed Deposits?

A Fixed Deposit is a savings account where you deposit a lump sum amount for a specific period at a fixed interest rate. The bank pays you interest on your FD, which can be either monthly, quarterly, or annually, depending on the terms. Once the FD matures, you receive your principal amount along with the interest accrued during the tenure.

Interest Rates by Tenure

Here is a breakdown of the interest rates for Fixed Deposits in various banks across different tenures:

Bank Name Small Finance Banks	1-Year	3-Year	5-Year
Jammu & Kashmir Bank	7.30	7.00	6.75
AU Small Finance Bank	8.00	7.25	7.50
Equitas Small Finance Bank	8.25	8.10	8.00
ESAF Small Finance Bank	7.25	8.00	7.25
Karur Vysya Bank	7.60	7.00	7.00
Karnataka Bank	7.00	7.00	7.00
Kotak Mahindra Bank	6.00	6.75	6.25
Jana Small Finance Bank	7.25	7.50	7.25
RBL Bank	8.00	7.00	7.50
NorthEast Small Finance Bank	8.25	7.05	7.30
SBM Bank India	9.00	7.00	8.00
Suryoday Small Finance Bank	8.60	8.25	8.25
Ujjivan Small Finance Bank	8.25	8.10	7.20
Tamilnad Mercantile Bank	7.60	7.00	6.50
Unity Small Finance Bank	8.60	7.25	8.15
YES Bank	7.75	7.75	7.25
Utkarsh Small Finance Bank	8.50	8.00	8.50

 Public Sector Banks

Bank Name	1-Year	3-Year	5-Year
Bank of Baroda	7.30	6.85	7.15
Bank of India	7.30	6.80	6.50
Bank of Maharashtra	7.45	6.75	6.50
Canara Bank	7.40	6.85	7.40
Central Bank of India	7.50	6.85	7.00
Indian Bank	7.30	6.10	6.25
Indian Overseas Bank	7.30	7.10	6.50
Punjab National Bank	7.25	6.80	7.00
Punjab & Sind Bank	7.25	6.30	6.50
State Bank of India	7.00	6.80	6.75
Union Bank of India	7.30	6.80	6.70

Private Sector Banks        

Bank Name	1-Year	3-Year	5-Year
Axis Bank	7.25	7.10	7.00
Bandhan Bank	8.05	8.05	7.25
CSB Bank	8.00	5.00	5.75
DBS Bank	7.50	7.00	6.50
DCB Bank	8.00	7.10	7.50
Federal Bank	7.50	7.00	7.10
HDFC Bank	7.25	6.60	7.00
ICICI Bank	7.25	6.70	7.00
IDFC FIRST Bank	7.90	6.50	6.80
IndusInd Bank	7.75	7.75	7.25

 Key Observations:

- Small Finance Banks generally offer the highest interest rates, with Suryoday Small Finance Bank, Utkarsh Small Finance Bank, and Unity Small Finance Bank leading the way in some categories, offering interest rates up to 8.60% for 1-year FDs.

- Among Public Sector Banks, Bank of Maharashtra and Canara Bank offer competitive rates with 7.45% and 7.40% for 1-year FDs.

- Private Sector Banks such as Axis Bank and HDFC Bank offer rates that are relatively moderate compared to small finance banks, with the highest rate being 7.75% in some cases.

 Which Bank Should You Choose?

When deciding where to invest your money in a Fixed Deposit, consider:

1. Interest Rate: The higher the rate, the better your returns.

2. Bank Stability: Ensure the bank you choose is reliable and stable.

3. Tenure: Longer-term FDs might offer higher interest rates but less liquidity.

It’s always a good idea to check with the bank for any special offers or promotions that might be available for specific periods.

Conclusion

Investing in Fixed Deposits is a great way to secure your savings with guaranteed returns. However, choosing the right bank and tenure is crucial to getting the best return on your investment. Based on the current FD rates, small finance banks offer the highest interest rates but ensure that you also factor in your financial goals and risk appetite before making a decision and never forgot to insure by checking the official website of mentioned bank for any changes.