FDs are one of the most popular and less risky investment instruments in our country, especially among risk-averse investors like senior citizens and the middle class. Many investors prefer bank FDs over equities as the former are considered safe and the return earned from a bank FD is fixed.
Fixed deposit are also known as term deposits. This is because money is deposited with a bank for a fixed pre-determined time period or term. However, the lowering interest rates are a major cause of concern for investors who prefer fixed deposits over other modes of investment.
At a time when the country is yet to recover fully from the economic impact of the Covid-19 pandemic, it can be argued that the lowering interest rates shouldn’t alone be the reason for investors to completely look away from FDs.
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.
However, IDFC First Bank, Bandhan Bank and small finance banks like Equitas and Utkarsh are offering 7 % interest rates on savings accounts, unlike State Bank of India (SBI), ICICI and HDFC Bank. Amid the falling fixed deposit (FD) interest rates in the last few months, retail investors can easily get swayed away by such lucrative rates.
HDFC Bank and ICICI Bank offer 3 % to 3.5 % on their savings account, SBI offers 2.70 % on their savings account.
Given below is a data on 10 banks currently offering highest FD Interest rates as per Financial Express.
10 Banks Currently Offering the Highest FD Interest Rates
Jana Small Finance Bank (7.5), Suryoday Small Finance Bank (7.5), IndusInd Bank (7.0), Equitas Small Finance Bank (7.0), DCB Bank (6.95), RBL Bank (6.95), Yes Bank (6.75), AU Small Finance Bank (6.75), Ujjivan Small Finance Bank (6.50), Fincare Small Finance Bank (6.50).
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