Fixed Deposits (FDs) offer some of the best returns on interest rates and are often the most stable and reliable option for your savings. In recent times, there has been a drop in interest rates, yet it still stands as a safe bet for building your savings. When choosing an FD scheme, however, it is important to note which banks can offer you the best returns, and often it is the one-year tenure that is a good indicator of these schemes. FDs offer safety for investors who are looking to mitigate the risks in the market and still gain interest on their money. Having said that, it is important to take note of which banks offer the best rates of interest.
Small Private Banks are the Way to Go
Smaller private banks these days give customers the best returns on interest in the financial market, considering the low-risk nature of the scheme. When it comes to one-year FDs, data from BankBazaar and the official banking websites show that RBL Bank and the Induslnd Bank offer customers the highest interest rates in the private sector. These banks offer 6 per cent to 6.1 per cent interest rates on one-year FDs.
For instance, in the case of RBL bank, the Fixed Deposit scheme applies for deposits of up to Rs 3 crore. In the bracket of 12 months to less than 24 months, this private bank offers its customers in the general citizen’s category an interest rate of 6.10 per cent. In the same timeframe, it offers its senior citizen customers an interest rate of 6.60 per cent.
On the other hand, Induslnd Bank offers its customers who fall into the general citizen’s category an interest rate of 6 per cent per annum, which falls under the 12-month package. Senior citizens choosing this bank for their FDs can expect to see an annual interest rate of 6.50 per cent on their returns. Another noteworthy contemporary offering account holders something similar in Yes Bank, with a 6 per cent interest rate per annum for general citizens and a 6.50 per cent interest rate per annum for senior citizens.
Be Careful of Jumping in with Leading Private Banks
It should be noted that smaller finance private banks offer relatively higher interest rates when compared to even the leading private-sector lenders. For instance, when considering ICICI Bank or HDFC Bank, one will only see a 4.90 per cent interest on the one-year FD savings scheme. Senior citizens might, at most, see an interest rate of 5.4 per cent per annum from these two banks. Another good example is Axis Bank.
This lender gives its account holders an estimate of 5 per cent for the time bracket of 11 months, 25 days to 1 year or a 5.15 per cent FD interest rate if the person opts for a 1 year to 1 year, 5 days time bracket. It also depends on if said person comes under the general citizen category. A senior citizen might see an interest rate of 5.5 or 5.6 per cent respectively depending on the scheme they choose.
Big private lenders like Kotak Mahindra Bank and IDFC offer annual FD interest rates of 4.50 per cent and 4.25 per cent respectively. These are amongst the lowest interest rates offered by private banks in India.
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