Which Bank Provides the Highest Interest Rate on Your Fixed Deposit?
There isn’t a single aspect of our lives that has not been hit hard by the ongoing pandemic. It has cannoned into every country’s economy. No wonder it influenced RBI’s decision to fix the repo rate at a record low of 4%. This, in turn, has been instrumental in lowering the FD interest rates of banks.
Fixed Deposit allows you to lock in the corpus for a fixed tenure in a bank or a non-banking financial company (NBFC). FD is a secured market-investment tool, wherein you enjoy guaranteed return at low risk. Once your money is stationed at a fixed interest rate, your fixed deposit rate stays unchanged throughout the tenure of your investment, irrespective of any future changes. Before you invest in FD, here’s what you should know:
The lock-in period in an FD typically ranges from 7 days to 10 years. Please note that the tenure is directly proportional to the rate of interest.
The more the amount deposited the higher the rate of interest will be, resulting in a higher return.
Senior citizens enjoy higher rates of interest as compared to normal FD interest rates.
You earn more interest on your FD than your savings account.
Any Indian resident, including minors and Hindu Undivided Family, is eligible to open an FD account
Withdrawal of money before the maturity of the account is not permitted. You can make a partial withdrawal in case of an emergency.
You need to link your savings account with your FD account. This eases the process of transferring money to your FD account from your savings account and vice versa.
Choose two nominees for your FD account
You can also take a loan against your FD
FD Interest Rates of Different Banks:
Bajaj Finance FD interest rates are the highest at 7.00% for deposits across all the tenures to individuals below 60 years Banks such as Citi Bank provides an interest rate as low as 2.40%-3.50% on your FD. Some banks—for instance, Allahabad Bank, Bank of India, Bandhan Bank, Corporation Bank, Indian Overseas Bank, PNB and SBI offer rates of interest on your FD within the range of 2.90% to 6% approximately. Whereas, financiers such as DCB Bank, Equitas Small Finance Bank, ICICI Home Finance, Indian Post Office and PNB Housing Finance allow FD interest rate as high as 4.25% to a maximum of 6.80%. Of all the small finance banks, Jana Small Finance Bank offers the best FD rate of 7.25% to general citizens.
Yes Bank provides the best interest rate of 7.50% on their FD. Bajaj Finance FD interest rates stand as high as 6.40-7.25%. Some other banks such as Andhra Bank, Canara Bank, Corporation Bank, Dhanlaxmi Bank, Laxmi Vilas Bank allow FD interest rates between 3.50% and 6.50%. Equitas Small Finance Bank offers up to 7.30%. Amongst the small finance banks, Jana Small Finance Bank offers the best FD rate of 7.75% to senior citizens.
If you want to invest in an FD, make sure you compare the different interest rates offered by various financial institutes before you park your hard-earned money. Make sure your financer offers a competitive rate of interest, such as Bajaj Finance FD interest rates. Take into consideration a few other factors—such as flexibility of tenure, ease in the process of application and ratings and approvals—and you are good to go.
