Fixed Deposits (FDs) are one of the safest investment options in India, offering guaranteed returns with minimal risk. Choosing the right bank for your FD can make a big difference in the interest you earn. Here’s a list of the top 10 banks offering the highest FD rates, based on the latest available data.
| Bank Name | Rate (%) | Tenure |
|---|---|---|
| RBL Bank | 8.10 | 500 days |
| DCB Bank | 8.05 | 19 to 20 months |
| IndusInd Bank | 7.75 | 1 to 2 years |
| Karur Vysya Bank | 7.60 | 760 days |
| IDFC First Bank | 7.50 | 501 days to 2 years |
| HSBC Bank | 7.50 | 601 to 699 days |
| Kotak Mahindra Bank | 7.40 | 390 days to less than 23 months |
| HDFC Bank | 7.40 | 4 years and 7 months (55 months) |
| Federal Bank | 7.40 | 50 months |
| Union Bank | 7.40 | 333 days |
1. RBL Bank
RBL Bank, known for its customer-focused services, offers one of the highest FD rates. With an interest rate of 8.10% for a tenure of 500 days, RBL Bank provides a lucrative option for short-term investors. For example, a deposit of ₹10,000 would grow to approximately ₹11,106 by the end of the term, earning around ₹1,106 in interest.
2. DCB Bank
DCB Bank, a new-generation private sector bank, offers attractive FD rates to cater to a variety of customer needs. With a rate of 8.05% for periods ranging from 19 to 20 months, DCB Bank provides a competitive option for those seeking higher returns. A deposit of ₹10,000 would result in a maturity amount of around ₹11,254 after 20 months, with ₹1,254 earned as interest.
3. IndusInd Bank
IndusInd Bank is a leading private sector bank known for its innovative products and services. It offers an FD rate of 7.75% for a period of 1 to 2 years, making it a good choice for medium-term investments. If you deposit ₹10,000, it would yield approximately ₹1,575 in interest over 2 years, totaling ₹11,575.
4. Karur Vysya Bank
Karur Vysya Bank, a well-established private sector bank with a rich history, offers a competitive FD rate of 7.60% for a tenure of 760 days. This rate is especially attractive for those willing to invest for a slightly longer period. A deposit of ₹10,000 would grow to about ₹11,628 after 760 days, with ₹1,628 in interest.
5. IDFC First Bank
IDFC First Bank, known for its customer-centric approach, provides an FD rate of 7.50% for tenures between 501 days and 2 years. This makes it a flexible option for investors who are looking to lock in their funds for a medium duration. A deposit of ₹10,000 would increase to approximately ₹11,237 after 2 years, earning ₹1,237 in interest.
6. HSBC Bank
HSBC Bank, a global banking leader, operates in India with a focus on providing premium financial services. It offers a competitive FD rate of 7.50% for tenures ranging from 601 to 699 days. A ₹10,000 deposit would grow to about ₹11,256 after 699 days, yielding ₹1,256 in interest, making it an attractive choice for those looking to invest for a little over a year.
7. Kotak Mahindra Bank
Kotak Mahindra Bank is renowned for its diverse range of financial products and excellent customer service. It offers an FD rate of 7.40% for tenures ranging from 390 days to less than 23 months. This makes it a good option for investors who want flexibility in their investment period. Investing ₹10,000 would result in a maturity amount of around ₹11,134, with ₹1,134 earned in interest.
8. HDFC Bank
HDFC Bank, one of India’s largest private sector banks, offers a reliable and secure option for long-term FD investors. With an FD rate of 7.40% for a tenure of 4 years and 7 months (55 months), HDFC Bank is ideal for those looking to invest over an extended period. A deposit of ₹10,000 would mature to about ₹13,391, with a total interest of ₹3,391 earned over the period.
9. Federal Bank
Federal Bank, a prominent private sector bank with a strong presence in South India, offers a rate of 7.40% for a tenure of 50 months. This rate is appealing for those comfortable with medium to long-term investments. A ₹10,000 deposit would grow to approximately ₹13,243 at the end of the tenure, earning ₹3,243 in interest.
10. Union Bank of India
Union Bank of India, a leading public sector bank, is known for its extensive network and customer-oriented services. It provides an FD rate of 7.40% for a short tenure of 333 days, making it a good option for those looking for quicker returns on their investment. A deposit of ₹10,000 would grow to around ₹10,674 at the end of 333 days, earning ₹674 in interest.
Conclusion
When choosing a bank for your FD, consider both the interest rate and the tenure that suits your needs. For example, if you’re looking for the highest return in a shorter period, RBL Bank with an 8.10% rate for 500 days is an excellent option. However, if you’re comfortable locking in your money for a bit longer, DCB Bank or IndusInd Bank offer competitive rates as well.
Fixed Deposits are a secure way to grow your savings, and by selecting a bank with a higher interest rate, you can maximize your returns. Always check the latest rates and terms, as they can change periodically. Happy investing!