FD Interest Rates: Even today, FD i.e. Fixed Deposit remains the major option for savings and investment for a large population in the country. Most people still invest money in FD. However, before investing, people definitely check where they are getting higher returns. The rest of the security concerns are removed by the RBI rule under which an amount up to Rs 5 lakh is insured. That means, even if the bank collapses, up to Rs 5 lakh remains safe.
If you want to keep your hard-earned money safe and earn good interest on it, then it is important to compare the interest rates of different banks before investing money in FD. According to the latest data, big government and private banks of the country are lagging behind in this matter. Small finance banks are offering more than 8% annual interest to customers. Names of 3 banks appear in this list.
3 banks giving highest interest on FD
Small finance banks are seen at the forefront in bank FD interest rates. Among these, Suryoday Small Finance Bank is at number one. After this is Ujjivan and Utkarsh Small Finance Bank.
- Suryoday Small Finance Bank: Interest up to 8.25 percent per annum
- Ujjivan Small Finance Bank: Interest up to 8.10 percent per annum
- Utkarsh Small Finance Bank: Interest up to 8.10 percent per annum
These rates may be applicable on selected periods of the bank. Therefore, before investing, please check the duration and conditions of the concerned FD.
How much interest is being received in post office schemes?
The interest rates of small savings schemes of the post office have been kept the same as before for the October-December 2026 quarter. Among these, the highest annual interest of 8.2 percent is being given in Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY). However, there are eligibility conditions for investing in both these schemes.
There are options for good returns for you in other post office schemes also.
- National Savings Certificate (NSC): 7.7 percent
- Post Office 5 years time deposit: 7.5 percent
- Kisan Vikas Patra (KVP): 7.5 percent
- Monthly Income Scheme (MIS): 7.4 percent
- Public Provident Fund (PPF): 7.1 percent
The amount invested in KVP doubles in 115 months. At the same time, MIS is an option for those investors who want regular monthly income.
How much more interest from HDFC, Axis and SBI?
FD rates of big private banks are lower than small finance banks. Kotak Mahindra Bank is offering interest up to 6.8 percent, HDFC Bank and Axis Bank 6.6 percent, while ICICI Bank is offering interest up to 6.55 percent.
Among government banks, Bank of India is offering 6.85 percent interest on its special 500 day FD. PNB and Indian Bank are offering interest up to 6.8 percent, Bank of Baroda and Canara Bank are offering interest up to 6.75 percent. At the same time, the interest rate on select tenures of SBI is up to 6.45 percent.
Where will you get the highest return in a 5 year FD?
If you want to invest for five years, then Suryoday Small Finance Bank’s FD is at the forefront with 8.25 percent interest. After this, 7.7 percent interest is available in Post Office NSC and 7.5 percent interest in five year time deposit. Among big banks, HDFC Bank is offering 6.6 percent interest and SBI is offering 6.05 percent interest on five-year FD.
Keep these things in mind before making FD
While talking to NDTV, Gurugram based personal finance advisor CA Amit Kumar said that investing money in FD only after seeing high interest is not the right decision. Higher interest rates from small finance banks are often applicable on FDs of specific tenures. Therefore, before investing, one must check the interest rate along with the duration of the FD, the penalty for premature withdrawal and the interest payment option.
Source: ndtv.in
