Compared! Best fixed deposit rates in various banks – Earn up to 9% FD interest; check details

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Updated: July 21, 2018 9:45:16 AM

Fixed deposit interest rates have witnessed a significant increase in recent months due to reversal of the interest rate regime. And these rates can be expected to move up further.

top fixed deposit rates, fixed deposit interest rates, fixed deposit in SBI, fixed deposit in HDFC, FDs, bank fixed deposit rates, small finance bank fixed deposit rates, nbfc fixed deposit rates, PNB, ICICI, Axis bankFixed deposits score the highest among all investment instruments in terms of income certainty and safety of principal.

If you are one of those looking to invest in fixed deposits, then this may be right time for you to park your funds in an FD of your choice. Bank fixed deposit (FD) rates, in fact, have witnessed a significant increase in recent months owing to the reversal of the interest rate regime. And being in a rising interest rate regime, the FD rates can be expected to move up further. While the highest interest rates offered by most major banks are hovering around 7% per annum currently, the rates offered by smaller banks can go up to 9% p.a. Senior citizens can earn 0.25-0.75% higher interest rates than the rates offered to regular depositors.

“Fixed deposits score the highest among all investment instruments in terms of income certainty and safety of principal. Once booked, their interest rates would remain the same throughout their tenure irrespective of any changes in their rates in the interim. However, their pre-mature withdrawal would attract steep penal rates,” says Naveen Kukreja, CEO & Co-founder, Paisabazaar.com.

The interest income earned from fixed deposits is taxed as per the tax-slab of the depositor. However, senior citizens earning fixed deposit interest income of up to Rs 50,000 per financial year would qualify for tax deduction under Section 80TTB from April 1, 2019.

Apart from banks, you can also invest in fixed deposits offered by various non-banking financial companies (NBFCs) as well as small finance banks, among others, as their interest rates are usually higher than those offered by banks. However, there are also some risks involved.

Whatever be the case, here are the top FD schemes of banks, small finance banks and NBFCs:

Top FD rates
Small finance banks
Bank NameTenureHighest interest rate slab
Regular interest rate
Fincare Small Finance Bank24 months 1 day to 36 months9.00%
ESAF Small Finance Bank365 days to 727 days8.75%
Suryoday Small Finance BankMore than 2 years to 3 years8.75%
Utkarsh Small Finance Bank456 days to less than 2 years8.50%
Ujjivan Small Finance Bank735 days8.25%
Major banks
Bank NameHighest available interest rate
TenureRegular interest rate
Axis Bank1 year to less than 14 months7.10%
ICICI Bank2 years to upto 10 years 7.00%
HDFC Bank1 year 17 days to 5 years7.00%
Punjab National Bankabove 1 year to 3 years6.75%
State Bank of India5 years to 10 years6.75%
Other banks
Bank NameHighest available interest rate
TenureRegular interest rate
IDFC Bank3 years 1 day to 10 years8.25%
RBL Bank12 months to less than 24 months7.75%
DCB Bank36 months to 60 months7.75%
Yes Bank18 months 8 days to 18 months 18 days7.50%
Bandhan Bank2 years to less than 5 years7.40%
NBFCs
NBFC NameHighest available interest rate
TenureRegular interest rate
Mahindra Finance33 months to 40 months8.75%
DHFL40 months to 60 months8.50%
ICICI home finance30 months to 60 months8%
Bajaj Finserv15 months7.85%
HDFC 22 months and 44 months7.80%
Sundaram Finance24 months to 36 months7.25%
Source:www.paisabazaar.com

However, while parking your funds in FDs, you should take into account not only the current interest rate, but also your risk profile as well as the safety of your money. After all, if return is the only criteria, then why to invest in FDs at all?

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