For conservative investors who avoid taking risks, fixed deposits (FDs) provide a reliable, consistent long-term investment return. Currently there are several banks in India that provide an interest of over 8% on FDs. Out of all the banks, small finance banks provide relatively higher interest rates compared to public, private and foreign banks.
Here are the latest FD rates for small finance, public, private, and foreign banks.
FD rates of small finance banks
In terms of small finance banks, Northeast Small Finance Bank offers the highest interest rate of 9% for a tenure of 546 to 1111 days, while Unity Small Finance Bank offers the same interest for a 1001-day tenure.
FD rate of Public sector banks
Public sector banks provide lower interest rates. However, they are typically preferred by people because they are considered to be reliable and stable.
Central Bank of India: 7.50% for a tenure of 1111 or 3333 days.
Bank of Maharashtra: Interest of 7.45% for 366 days.
Canara Bank: 7.40% interest rate for 3 years to less than 5 years.
Indian Bank: 7.30% rate for a 400-day tenure.
Union Bank of India: 7.30% interest rate for 456 days.s
FD rates of Private sector Banks
Private sector banks offer relatively lower interest rates on FDs than small finance banks. However, these rates are higher than those offered by public sector banks.
Bandhan Bank: 8.05% for a 1-year tenure.
DCB Bank: 8.05% for 19 months to 20 months
RBL Bank: 8.00% for 500 days
IndusInd Bank: 7.99% for 1 year 5 months to less than 1 year 6 months
IDFC First Bank: 7.90% for 400 to 500 days
HDFC Bank: 7.40% for 4 years 7 months (55 months)
ICICI Bank: 7.25% for 15 months to 2 year
