For Quick Alerts
Subscribe Now  
Investments Of $12.6 Billion To Fuel Electric Vehicles Over The Next 5 years: Collier
View Sample
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Just In

Don't Miss

Top 10 Banks Offering Returns Up To 7.35% On 1-2 Year Fixed Deposits

By
|

Fixed deposit real returns are harder to achieve in an environment where interest rates are in a downtrend and inflation is rising. As a consequence, we constantly advise our readers to put their money in short-term fixed deposits as of now. Although fixed deposits have a variable duration ranging from seven days to ten years, we recommend investing in short-term fixed deposits in order to reduce interest rate risk. The rationale behind the same whenever there is an uptrend in interest rates banks always hikes their rates on short tenors. For example, on December 1, 2021, HDFC Bank increased its interest rates by 10 basis points over seven days to one year. By investing in fixed deposits for a short tenor, such as one year or two years, you can not only reduce interest rate risk but also have the opportunity to reinvest your maturity amount, increasing your return reward.

 

Another advantage is that you can utilise the Fixed Deposit Ladder strategy, which allows you to divide your deposit into various fixed investment instruments with variable tenors and protect your deposit and return from interest rate fluctuations. However, you will not be able to enjoy these benefits in long-term deposits such as 5 years since your deposits will be locked-in for the entire tenor and withdrawing your deposits prematurely will result in a penalty that will reduce your interest rate. Now that we've clarified why people should invest in short-term fixed deposits, let's look at which banks are now giving the best rates on fixed deposits with maturities of one to two years.

Top 10 Public Sector Banks Offering Highest Interest Rates On Fixed Deposits of 1 To 2 Year

According to my study, here are the top 10 public sector banks that are now offering the best rates on fixed deposits of less than Rs. 2 crore maturing in one to two years.

Sr No.BanksRegular Interest rates (p.a)Senior citizensW.e.f.
1Indian Overseas Bank5.15%5.65%09.11.2020
2Canara Bank5.10%5.60%09.08.2021
3Punjab & Sind Bank5.05%5.55%16.09.2021
4Union Bank of India5.00% to 5.10%5.50% to 5.60%01.09.2021
5State Bank of India5.00%5.50%08.01.2021
6Punjab National Bank5.00%5.50%01.08.2021
7Bank of India5.00%5.50%01.08.2021
8Central Bank of India5.00%5.50%10.11.2021
9Indian Bank4.95% to 5.10%5.40% to 5.60%05.11.2021
10UCO Bank4.90% to 5.00%6.40% to 6.50%16.11.2021
Source: Bank Website

 

Top 10 Private Sector Banks Offering Highest Interest Rates On Fixed Deposits of 1 To 2 Year

As per my research, the top ten public sector banks providing the highest rates on fixed deposits of less than Rs 2 crore with a maturity of one to two years are as follows.

Sr No.BanksRegular Interest rates (p.a)Senior citizensW.e.f.
1RBL Bank6.00%6.50%1st September 2021
2Yes Bank6.00%6.50%3rd November 2021
3IndusInd Bank6.00%6.50%23rd July 2021
4DCB Bank5.55% to 5.95%6.05% to 6.45%November 22, 2021
5Bandhan Bank5.50%6.25%June 7, 2021
6IDFC First Bank5.25%5.75%November 23, 2021
7South Indian Bank5.20%5.70%8th October 2021
8Karur Vysya Bank5.15%5.65%08.10.2021
9Axis Bank5.10% to 5.25%5.75% to 5.90%14/12/2021
10Nainital Bank5.10% to 5.35%5.60% to 5.85%10th September 2021
Source: Bank Website

Top 10 Small Finance Banks Offering Highest Interest Rates On Fixed Deposits of 1 To 2 Year

Based on my findings, the following are the top 10 small finance banks that offer the best rates on fixed deposits of less than Rs 2 crore with a term of one to two years.

Sr No.BanksRegular Interest rates (p.a)Senior citizensW.e.f.
1North East Small Finance Bank6.75%7.25%19th April 2021
2Ujjivan Small Finance Bank6.5% to 6.60%7.25% to 7.35%09.12.2021
3Jana Small Finance Bank6.50%7.00%07/05/2021
4Suryoday Small Finance Bank6.50%6.75%September 09, 2021
5Shivalik Small Finance Bank6.00% to 6.75%6.25% to 6.75%December 1st, 2021
6Utkarsh Small Finance Bank6.25% to 6.00%6.75% to 6.50%July 01, 2021
7Capital Small Finance Bank6.00%6.50%June 3, 2021
8Fincare Small Finance Bank6.00%6.50%25th October 2021
9ESAF Small Finance Bank6% to 6.25%6.50% to 6.75%01/12/2021
10Equitas Small Finance Bank5.85% to 5.75%6.35% to 6.25%1st October 2021
Source: Bank Website

MORE FD NEWS  

Story first published: Thursday, December 16, 2021, 15:19 [IST]
Other articles published on Dec 16, 2021