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10 Banks Offering The Highest Interest Rates On 1-2 Years’ Fixed Deposits

·2-min read

Assured returns, high liquidity and ease of investments make fixed deposits one of the most preferred investment vehicles in our country. However, the Reserve Bank of India’s decision to keep the repo rate unchanged at 4% for a year now to counter the economic fallout of the Covid-19 pandemic has contributed towards a majority of banks lowering their FD interest rates. This has been a worrying trend for countless risk-averse investors like senior citizens who often rely on their FD returns not just to accomplish their financial goals but also for their day-to-day expenses. That being said, there are still a few private and small finance banks that are offering above-average FD returns. Investors could consider investing a portion of their funds in FDs of these banks after a thorough risk assessment, and if doing so is in line with their returns expectations, risk appetite and liquidity requirements.

So, if you’re looking to invest in an FD for the short-term, here are the banks that are offering the highest interest rates on FDs with a tenure of 1-2 years. Do note, we have only included the highest advertised rates for 1-2 years tenure range for normal FDs amounting to less than Rs.1 crore for each of the banks mentioned in the list. Senior citizen depositors usually get preferential rates by up to 50 basis points over and above the normal rates.

10 Banks Offering The Highest Interest Rates On 1-2 Years’ Fixed Deposits

Bank name

Bank type

Highest advertised interest rate for 1-2 years’ normal FDs

Jana Small Fin. Bank

Small finance bank

7.00% p.a.

Suryoday Small Fin. Bank

Small finance bank

6.75% p.a.

DCB Bank

Private bank

6.70% p.a.

IndusInd Bank

Private bank

6.50% p.a.

Yes Bank

Private bank

6.50% p.a.

Ujjivan Small Fin. Bank

Small finance bank

6.50% p.a.

Equitas Small Fin. Bank

Small finance bank

6.40% p.a.

AU Small Fin. Bank

Small finance bank

6.35% p.a.

RBL Bank

Private bank

6.25% p.a.

Fincare Small Fin. Bank

Small finance bank

6.20% p.a.

Disclaimer: Data as on respective banks’ website on April 30, 2021. The maximum offered interest rate has been considered for 1-2 years range. All interest rates are for normal fixed deposits amounting to less than Rs.1 crore. Image courtesy: Freepik

Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.

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