fixed deposit
If you want to get good returns while keeping your hard-earned money safe, then Fixed Deposit (FD) is a reliable option. But when interest rates in banks are low, even a slight increase or fall in FD rates can have a big impact on your returns. Since the interest rate on FD is fixed at the time of investment, the investor should always keep an eye on the new FD rates of banks.
Highest interest in small finance banks
Among small finance banks, Utkarsh Small Finance Bank is offering the highest interest rate of 7.65%. After this, Slice Small Finance Bank and Jana Small Finance Bank are offering 7.50% interest on 3 year FD. Whereas the rate of Suryoday Small Finance Bank is 7.25% and that of AU Small Finance Bank is 7.10%. In small finance banks, FDs up to ₹ 5 lakh are guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Experts recommend that investors invest only that amount in these banks which falls within this limit, so that in case of any unexpected situation, your principal and interest remain safe.
Highest rate among private banks
Among private banks, RBL Bank is offering 7.20% interest on 3 year FD. SBM Bank India’s rate is 7.10%, while Bandhan Bank, Yes Bank and DCB Bank are offering 7% interest. The rate of IndusInd Bank is 6.90%, and that of ICICI Bank and Axis Bank is 6.60%. Whereas HDFC Bank is giving 6.45% interest on 3 year FD.
Interest rates in government banks
Interest rates on 3 year FD in government banks are between 6% to 6.60%. Among these, Union Bank of India is offering the highest interest at 6.60%, Bank of Baroda at 6.50%, Punjab National Bank (PNB) at 6.40%, and State Bank of India (SBI) at 6.30%. It is clear from these rates that although the interest rates in government banks are slightly less, investors still give them priority because of their security and trust.