Best Fixed Deposit rates: Not SBI, these banks offer up to 8.25% FD interest; Should you invest?
For Fixed Deposit investors, the last 7-8 weeks have been full of good news with several banks announcing rates hike one after the another.
For Fixed Deposit investors, the last 7-8 weeks have been full of good news with several banks announcing rates hike one after the another. The largest lender in the country, SBI was the first to announce the FD rate on July 30. The public sector bank was followed by several others like HDFC, PNB etc. It may surprise many readers the current FD rates offered by many new and small banks are higher than those offered by larger banks like SBI, HDFC etc. Some of the small banks offer FD rates up to 8.25% for deposits below Rs 1 crore. Take a look:
AU Small Finance Bank
| TENURE BUCKETS | Resident / NRE* / NRO Interest Rate (%) | Senior Citizen Interest Rate p.a. (%) |
| 7 Days to 1 Month 15 Days | 5.50% | 6.00% |
| 1 Month 16 Days to 3 Months | 6.75% | 7.25% |
| 3 Months 1 Day to 6 Months | 6.90% | 7.40% |
| 6 Months 1 Day to 12 Months | 7.00% | 7.50% |
| 12 Months 1 Day to 18 Months | 7.75% | 8.25% |
| 18 Months 1 Day to 24 Months | 8.00% | 8.50% |
| 24 Months 1 Day to 36 Months | 7.75% | 8.25% |
| 36 Months 1 Day to 45 Months | 7.75% | 8.25% |
| 45 Months 1 Day to 60 Months | 8.00% | 8.50% |
| Above 60 Months* | 7.25% | 7.75% |
Deutsche Bank Fixed Deposit rates
| Tenure | < Rs. 1 cr | |
| Interest Rate | Interest Rate for Senior Citizens* | |
| 7 Days | 4 | 4 |
| 8 - 14 Days | 4.35 | 4.35 |
| 15 - 29 Days | 4.5 | 4.5 |
| 30 Days | 5.00 | 5.00 |
| 31 - 45 Days | 5.00 | 5.00 |
| 46 - 59 Days | 5.25 | 5.25 |
| 60 - 89 Days | 5.5 | 5.50 |
| 90 - 99 Days | 5.2 | 5.7 |
| 100 Days | 6 | 6.5 |
| 101 - 180 Days | 5.7 | 6.2 |
| 181 - 270 Days | 6.5 | 7 |
| 271 Days - 1 Yr | 6.5 | 6.5 |
| > 1 Yr - 1.5 Yrs | 7.75 | 7.75 |
| > 1.5 Yrs - 2 Yrs | 7.75 | 7.75 |
| > 2 Yrs - 3 Yrs | 7.50 | 7.50 |
| > 3 Yrs - 4 Yrs | 7.5 | 7.50 |
| > 4 Yrs - < 5 Yrs | 7.50 | 7.50 |
| 5 Yrs | 8.25 | 8.25 |
Laxmi Vilas Bank Fixed Deposit rates
| Card Rates (% Per Annum) | ||||||
| Maturity Period) | Regular) | Senior Citizen | ||||
| (Not applicable for RD and NRO) | ||||||
| 7-14 days | 4.5 | 4.5 | ||||
| 15-30 days | 4.5 | 4.5 | ||||
| 31-45 days | 5.5 | 5.5 | ||||
| 46-90 days | 6 | 6 | ||||
| 91-180 days | 6.5 | 7 | ||||
| 181 - 364 days | 7.3 | 7.8 | ||||
| 12 Months to 1 | 7.5 | 8.1 | ||||
| 20 Months | ||||||
DCB Bank Fixed Deposit Rates
| Tenure | Deposit Interest Rate | Effective Annualised Yield (% per annum) * | Rate for Senior Citizens (% per annum) | Effective Annualised Yield (% per annum) * |
| (percent per annum) | ||||
| Single Deposit of less than Rs.100 lakhs | ||||
| 7 days to 14 days | 4.00% | 4.00% | 4.50% | 4.50% |
| 15 days to 45 days | 4.00% | 4.00% | 4.50% | 4.50% |
| 46 days to 90 days | 5.00% | 5.00% | 5.50% | 5.50% |
| 91 days to less than 6 months | 6.75% | 6.75% | 7.25% | 7.25% |
| 6 months to less than 12 months | 7.00% | 7.15% | 7.50% | 7.68% |
| 12 months | 7.00% | 7.19% | 7.50% | 7.71% |
| 12 months 1 day to less than 15 months | 7.40% | 7.61% | 7.90% | 8.14% |
| 15 months to 24 months | 7.50% | 8.01% | 8.00% | 8.58% |
| More than 24 months to less then 36 months | 7.60% | 8.36% | 8.10% | 8.97% |
| 36 months to 60 months | 7.75% | 9.36% | 8.25% | 10.09% |
| More than 60 months to 120 months | 7.25% | 10.51% | 7.75% | 11.55% |
IDFC Bank Fixed Deposit Interest Rates
Bandhan Bank Fixed Deposit Interest rates
Should you invest in these small banks?
Fixed Deposits in new and small banks offering high rates are safe as they are also regulated by the Reserve Bank of India. These banks have to follow RBI regulations that entitle their depositors to a deposit insurance of Rs 1 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC) in case of bank failure. The insurance cover includes deposit types like savings, current, fixed and recurring deposits.
The high rates offered by small banks may not be a long-term phenomenon. At present, these banks are trying to build a large corpus of liquid money, hence the high rates offered by them.
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