Check out the top banks offering the highest FD interest rates in India. Fixed deposits (FDs) are India’s most popular and safest investment options. They offer a guaranteed return on investment, making them an ideal choice for conservative investors. While several banks in India offer fixed deposit schemes, the interest rates vary significantly between different banks and categories. To help investors maximize their returns, this article covers the banks offering the highest interest rates on FDs, including small finance banks, private banks, public sector banks, and foreign banks. Find out which banks in India provide the highest interest rates on FD in India for 2024.
Small Finance Banks Offering High Interest Rates on Fixed Deposits
Small finance banks in India have offered competitive interest rates on fixed deposits, often surpassing those of larger private and public sector banks. These banks focus on providing financial services to underserved sectors, including small and medium enterprises (SMEs) and individuals in rural areas. Below is a list of small finance banks offering some of the highest interest rates on fixed deposits:
- North East Small Finance Bank: Offers an attractive interest rate of 9% on FDs ranging from 546 to 1111 days.
- Unity Small Finance Bank: Provides 9% interest for a fixed deposit tenure of 1001 days.
- Suryoday Small Finance Bank: Offers an 8.6% interest rate for a fixed deposit term between 2 to 3 years.
- Jana Small Finance Bank: Provides 8.25% interest on FDs with a term ranging from 1 to 3 years.
- Utkarsh Small Finance Bank: Offers 8.50% interest for FD terms ranging from 2 to 3 years.
- Equitas Small Finance Bank: Provides 8.25% interest on FDs with a tenure of 888 days.
- Ujjivan Small Finance Bank: Offers 8.25% interest for 12-month fixed deposits.
These small finance banks offer higher returns than traditional banks and cater to a wide range of customer needs, especially in underserved areas.
Private Sector Banks Offering High Interest Rates on Fixed Deposits
Private sector banks in India are known for their customer-centric approach and competitive interest rates. Several private banks offer attractive interest rates on fixed deposits, some even offering over 8% for select tenures. Below is a breakdown of some of the private banks that offer high interest rates on fixed deposits:
- Bandhan Bank: Offers 8.05% interest on 1-year fixed deposits.
- IDFC First Bank: Provides 7.90% interest for FD tenures ranging from 400 to 500 days.
- RBL Bank: Offers 8.00% interest for 500-day fixed deposits.
- DCB Bank: Offers 8.05% interest for 19 to 20 months.
- IndusInd Bank: Provides 7.99% interest for deposits between 5 months to 1 year and 6 months.
- HDFC Bank: Offers 7.40% interest for FDs up to 4 years and 7 months (55 months).
- ICICI Bank: Provides 7.25% interest for deposits ranging from 15 months to 2 years.
Private banks in India are highly competitive regarding FD interest rates, often offering better rates than public sector banks for shorter tenures.
Public Sector Banks Offering High Interest Rates on Fixed Deposits
While public sector banks typically offer lower interest rates than their private counterparts, some still provide competitive returns on fixed deposits. Many people trust public sector banks for their reliability and government backing. Below are the public sector banks providing relatively high interest rates on FDs:
- Bank of Maharashtra: Offers 7.45% interest for 366-day fixed deposits.
- Central Bank of India: Provides 7.50% interest for FDs with tenures up to 3333 days.
- Bank of Baroda and Bank of India offer 7.30% interest for 400-day fixed deposits.
- Canara Bank: Offers 7.40% interest for FDs with 3 to 5 years of tenure.
- Indian Bank: Provides 7.30% interest for 400-day fixed deposits.
- Union Bank of India: Offers 7.30% interest for 456-day fixed deposits.
Public sector banks are generally considered safer investments, offering relatively lower interest rates but stable and secure returns.
Foreign Banks Offering High Interest Rates on Fixed Deposits
Though fewer in number, foreign banks in India also offer competitive fixed deposit interest rates. These banks cater to a niche market segment, often providing personalized services and attractive FD schemes. Below are the foreign banks offering some of the highest interest rates:
- Deutsche Bank: Offers 8% interest for FDs with tenures ranging from 1 to 3 years.
- HSBC: Provides 7.50% interest on FDs ranging from 601 to 699 days.
- Standard Chartered Bank: Offers 7.50% interest for FDs from 1 year to 375 days.
Foreign banks generally offer slightly higher interest rates than public sector banks and are suitable for investors seeking reliable returns with global banking experience.
Conclusion
Small finance banks dominate the market for high fixed deposit interest rates, with some offering as much as 9% interest. Private banks follow closely behind with competitive rates, especially for medium-term FDs. While offering lower rates, public sector banks still provide secure returns for conservative investors. Lastly, foreign banks offer competitive interest rates for those looking for additional options.
Before choosing a bank, investors should compare the interest rates, tenure options, and other features of various fixed deposit schemes to select the one that best fits their financial goals. Fixed deposits remain an excellent option for risk-averse investors seeking steady returns.