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

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

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.

By: | Updated: July 21, 2018 9:45 AM
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 bank Fixed 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 Name Tenure Highest interest rate slab
Regular interest rate
Fincare Small Finance Bank 24 months 1 day to 36 months 9.00%
ESAF Small Finance Bank 365 days to 727 days 8.75%
Suryoday Small Finance Bank More than 2 years to 3 years 8.75%
Utkarsh Small Finance Bank 456 days to less than 2 years 8.50%
Ujjivan Small Finance Bank 735 days 8.25%
Major banks
Bank Name Highest available interest rate
Tenure Regular interest rate
Axis Bank 1 year to less than 14 months 7.10%
ICICI Bank 2 years to upto 10 years 7.00%
HDFC Bank 1 year 17 days to 5 years 7.00%
Punjab National Bank above 1 year to 3 years 6.75%
State Bank of India 5 years to 10 years 6.75%
Other banks
Bank Name Highest available interest rate
Tenure Regular interest rate
IDFC Bank 3 years 1 day to 10 years 8.25%
RBL Bank 12 months to less than 24 months 7.75%
DCB Bank 36 months to 60 months 7.75%
Yes Bank 18 months 8 days to 18 months 18 days 7.50%
Bandhan Bank 2 years to less than 5 years 7.40%
NBFCs
NBFC Name Highest available interest rate
Tenure Regular interest rate
Mahindra Finance 33 months to 40 months 8.75%
DHFL 40 months to 60 months 8.50%
ICICI home finance 30 months to 60 months 8%
Bajaj Finserv 15 months 7.85%
HDFC 22 months and 44 months 7.80%
Sundaram Finance 24 months to 36 months 7.25%
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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