Bank fixed-income investors may rejoice. Several banks have recently upped the Best-Fixed Deposit Rates in India on fixed-term deposits by at least 20 basis points. Should you start investing in fixed-income securities right away?
For people who don’t want to take high risks, a fixed deposit (FD) is an excellent option. The duration flexibility of the best fixed deposit scheme is one of its finest qualities. It allows you to handle many FDs with different terms and deposit rates.
You may start an FD account at the bank where you already have a savings account or any other bank that offers the best-fixed deposit interest rates. It is entirely your choice; however, the approach may differ since your KYC and other veriication requirements need to be completed if you go to a bank without prior interaction. Read on to find out which are the best banks for fixed deposits that provide India’s best fd interest rates.
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What is an FD?
The Best Fixed Deposit Schemes offer the security of a fixed sum and a consistent income flow. If you have a substantial amount of money that you do not intend to spend for a long time, you may invest in an FD account with the best fixed deposit interest rates. As Best-Fixed Deposit Rates in India are not market-linked, they are not affected by market fluctuations. FDs provide a fixed rate of interest for the length of the arrangement.
It is now relatively easy to open a savings account. You may use internet banking or visit the best bank for fixed deposits. You may circumvent the KYC procedure and transfer cash from your savings account if you create an FD account at the same bank where you have a savings account.
FDs are handy for emergency requests or financial emergencies since the money is readily available. You may borrow a loan against your FD but understand the terms and conditions beforehand.
After maturity, you may transfer the FD money to your savings account or renew it for India’s Best Fixed Deposit Rates. The funds will be reinvested as a fixed deposit in the second situation. Please remember that if you prematurely terminate your FD, you will get less of the best-fixed deposit interest rates, and a penalty will be deducted from your FD balance. Consider all advantages and disadvantages and the interest rates given by different banks for FDs before making a final decision.
You may also use the Kuvera app to safely invest your hard-earned money in a Fixed Deposit.
Best FD Interest Rates in India
The Best Fixed Deposit Rates in India for regular depositors at some of the best banks for fixed deposits vary from 2.10-7.25 per cent per year for tenures ranging from 7 days to 10 years. In addition to the applicable FD card rates, seniors are often granted 0.50-0.75 per cent annually.
Best Fixed Deposit Interest Rates in Small Banks
| Bank Name | Interest Rates (% p.a.) | |||
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| Utkarsh Small Finance Bank | 7.25 | 6.90 | 6.75 | 6.75 |
| Suryoday Small Finance Bank | 7.00 | 6.50 | 7.00 | 6.75 |
| Ujjivan Small Finance Bank | 7.10 | 6.50 | 6.50 | 6.25 |
| Jana Small Finance Bank | 7.00 | 6.50 | 6.75 | 6.75 |
| Equitas Small Finance Bank | 6.75 | 6.10 | 6.50 | 6.00 |
| Fincare Small Finance Bank | 6.75 | 6.00 | 6.50 | 6.75 |
| ESAF Small Finance Bank | 7.25 | 5.50 | 5.75 | 5.25 |
| AU Small Finance Bank | 6.75 | 5.25 | 6.75 | 6.75 |
| Capital Small Finance Bank | 6.30 | 6.00 | 6.00 | 6.00 |
| Shivalik Small Finance Bank | 7.00 | 5.75 | 5.50 | 5.50 |
| North East Small Finance Bank | 7.00 | 5.00 | 6.75 | 6.50 |
Best Fixed Deposit Rates in Private Banks
| Bank Name | Interest Rates (% p.a.) | |||
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| SBM Bank India | 6.60 | 6.00 | 5.85 | 5.85 |
| DCB Bank | 6.25 | 5.55 | 6.25 | 6.25 |
| RBL Bank | 6.50 | 6.25 | 6.30 | 6.30 |
| IndusInd Bank | 6.50 | 6.00 | 6.50 | 6.50 |
| Nainital Bank | 5.35 | 5.10 | 5.35 | 5.35 |
| IDFC First Bank | 6.25 | 6.00 | 6.00 | 6.25 |
| Karur Vysya Bank | 5.80 | 5.40 | 5.65 | 5.80 |
| CSB Bank | 5.50 | 5.00 | 5.25 | 5.25 |
| Axis Bank | 5.75 | 5.25 | 5.60 | 5.75 |
| South Indian Bank | 5.80 | 5.00 | 5.50 | 5.80 |
| Tamilnad Mercantile Bank | 5.35 | 5.25 | 5.00 | 5.00 |
| Karnataka Bank | 5.50 | 5.25 | 5.40 | 5.40 |
| Dhanlaxmi Bank | 5.75 | 5.15 | 5.30 | 5.40 |
| Bandhan Bank | 6.25 | 5.75 | 6.25 | 5.60 |
| HDFC Bank | 5.75 | 5.10 | 5.40 | 5.60 |
| ICICI Bank | 5.75 | 5.10 | 5.40 | 5.60 |
| DBS Bank | 5.75 | 5.10 | 5.65 | 5.75 |
| Jammu & Kashmir Bank | 5.50 | 5.20 | 5.45 | 5.50 |
Best Bank Fixed Deposit Rates in Public Sector Banks
| Bank Name | Interest Rates (% p.a.) | |||
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| Union Bank of India | 5.50 | 5.00 | 5.30 | 5.40 |
| Canara Bank | 5.75 | 5.30 | 5.70 | 5.75 |
| State Bank of India | 5.50 | 5.10 | 5.45 | 5.50 |
| Punjab & Sind Bank | 5.40 | 5.15 | 5.40 | 5.40 |
| Indian Bank | 5.25 | 5.00 | 5.20 | 5.25 |
| Bank of Baroda | 5.35 | 5.00 | 5.20 | 5.35 |
| Punjab National Bank | 5.25 | 5.10 | 5.10 | 5.25 |
| Indian Overseas Bank | 5.45 | 5.15 | 5.45 | 5.45 |
| Bank of India | 5.20 | 5.00 | 5.20 | 5.20 |
| Bank of Maharashtra | 5.00 | 5.00 | 4.90 | 4.90 |
Kuvera makes it simple to compare the fixed deposit alternatives provided by several banks. To have a smooth experience at Kuvera, follow the procedures outlined below:
Step 1: Download the Kuvera app or visit our website and sign up.
Step 2: Complete your KYC by providing your PAN, Aadhaar, and in-person verification through video. KYC compliance is required by the Prevention of Money Laundering Act, 2002 and its regulations, as well as the SEBI Master Circular on Anti Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT)/Obligations of Securities Market Intermediaries.
Step 2: Select the ‘Invest’ option from “Home“
Step 3: Select ‘Fixed Deposits’
Step 4: On Kuvera, you will find a list of several fixed deposit choices, organised by duration, bank, NBFC, and so on. Click on any FD to see its duration, interest rate, and necessary minimum deposit. Check the fixed deposit’s lock-in duration to be sure.
Step 5: Select the fixed deposit you want to invest in, and tap on “Start FD”.
Step 6: You will be asked to provide your primary bank account details – IFSC code, account number and account type.
Step 7: These details will be used to withdraw the funds needed for your Fixed Deposit and to register the account where the maturity amount will be credited if you didn’t choose to auto-renew. After filling in the details, confirm the details and agree to the Terms and Conditions.
Step 8: Check if the funds are withdrawn from your account and download your Deposit Receipt from the Kuvera app or Website, The Kuvera App will store all your Deposit Certificates and Receipts.
Bajaj Finance Fixed Deposit is among the best, if not the best-fixed deposit out there. It offers upto 7.2% interest with long-term deposits and advantages for senior citizens. Use Kuvera to invest in your own Bajaj Finance Fixed Deposit.
Conclusion
Banks are progressively boosting FD interest rates to compete for the best-fixed deposit rates in India due to the RBI’s repo rate increase, signalling that better days are ahead for FD investors. Fixed deposits have been a popular investment vehicle for the elderly, who often invest their retirement funds in low-risk areas and high rewards. As FDs are becoming increasingly popular, you can now choose several options to avail yourself of the best-fixed deposit rates in India.
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