Banks Offer Competitive Rates for Fixed Deposits: Latest Interest Rates for Various Tenure Options

Fixed Deposits Remain a Preferred Investment Option for Risk-Averse Investors

Fixed deposits (FDs) continue to be a popular choice for investors seeking stable and predictable returns. Even with interest rates remaining relatively steady, several banks, particularly small finance banks, offer higher returns for deposits with tenures ranging from one to five years.

The interest rates for FDs vary widely by tenure and category across banks. While small finance banks offer rates of up to 8 percent in select tenures, private sector banks cluster around 7-7.25 percent, and public sector banks continue to offer rates in the 6-6.6 percent range.

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Specifically, Suryoday Small Finance Bank offers FD interest rates of up to 8.10 percent per annum, while ESAF Small Finance Bank and Shivalik Small Finance Bank offer rates of up to 8.00 percent and 7.80 percent per annum, respectively. Jana Small Finance Bank offers a rate of up to 7.77 percent per annum, and Slice Small Finance Bank offers a rate of up to 7.75 percent per annum.

For private sector banks, SBM Bank India offers FD interest rates of up to 7.85 percent per annum, while IDFC FIRST Bank and CSB Bank offer rates of up to 7.40 percent and 7.35 percent per annum, respectively. Bandhan Bank offers a rate of up to 7.25 percent per annum, and RBL Bank offers a rate of up to 7.20 percent per annum.

Public sector banks, on the other hand, offer relatively lower FD interest rates. Punjab & Sind Bank offers a rate of up to 6.75 percent per annum, while Bank of Maharashtra and Bank of India offer rates of up to 6.65 percent and 6.60 percent per annum, respectively. Canara Bank, Indian Bank, and Punjab National Bank also offer rates of up to 6.60 percent per annum.

Foreign banks offer FD interest rates that are generally lower than those offered by domestic banks. Deutsche Bank offers a rate of up to 7.00 percent per annum, while Standard Chartered Bank and HSBC Bank offer rates of up to 6.60 percent and 5.50 percent per annum, respectively.

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For investors, the choice of bank should not be based solely on interest rates. Factors such as deposit safety, liquidity needs, and premature withdrawal penalties should also be considered before locking in funds. Comparing rates across tenures and bank categories can help maximize returns while maintaining the desired level of safety.