The Reserve Bank of India (RBI) has maintained the repo rate at 6.5 per cent for the 10th consecutive time in its bi-monthly Monetary Policy Committee (MPC) review meeting on October 9. But it has changed its stance from “withdrawal of accommodation” to “neutral,” marking a crucial shift in the approach it has adopted since May 2022.
This stance implies readiness to adjust the monetary policy as the economic situation unfolds. If inflation remains below the 4 percent medium-term target, future rate cuts are possible.
Secure your FD rates now
Fixed deposits offer liquidity and assured interest income. According to Adhil Shetty, CEO, BankBazaar.com, "Risk-averse investors should lock in high fixed deposit (FD) rates now, as they're expected to decline in the coming months."
Below are 15 private and public sector banks that offer the highest interest rates on fixed deposits. Paisabazaar has compiled the data.
The best rates offered by these banks on three-year FDs (of up to Rs 1 crore) for resident, retail, and non-senior citizens have been taken into account. The value is calculated based on quarterly compounding of interest. The data is as of October 8, 2024.
DCB Bank
DCB Bank offers an interest rate of 7.55 percent on FDs with a tenor of three years. Among private banks, this lender offers the best interest rate. In three years, a Rs 1-lakh FD would have grown to Rs 1.23 lakh.
RBL Bank
RBL Bank offers an interest of 7.50 percent on three-year FDs. A deposit of Rs 1 lakh here will grow to Rs 1.23 lakh on the maturity date.
Also explore: High-return FDs offered by trusted banks and NBFCs on the Moneycontrol app.
SBM Bank India
SBM Bank India offers an interest rate of 7.30 percent on FDs of the same tenor. If you were to invest Rs 1 lakh, the amount would have grown to Rs 1.22 lakh on maturity.
| THE MOST REMUNERATIVE THREE YEARS FIXED DEPOSITS | ||
| Bank Name | Interest rate (per annum) for three years' tenure | How Rs 1 lakh grows in 3 years |
| DCB Bank | 7.55 | 1.23 lakh |
| RBL Bank | 7.5 | 1.23 lakh |
| SBM Bank India | 7.3 | 1.22 lakh |
| Bandhan Bank | 7.25 | 1.22 lakh |
| IndusInd Bank | 7.25 | 1.22 lakh |
| YES Bank | 7.25 | 1.22 lakh |
| Bank of Baroda | 7.15 | 1.21 lakh |
| Axis Bank | 7.10 | 1.21 lakh |
| Federal Bank | 7 | 1.21 lakh |
| HDFC Bank | 7 | 1.21 lakh |
| ICICI Bank | 7 | 1.21 lakh |
| IDFC First Bank | 7 | 1.21 lakh |
| Karur Vysya Bank | 7 | 1.21 lakh |
| Kotak Mahindra Bank | 7 | 1.21 lakh |
| Punjab National Bank | 7 | 1.21 lakh |
| Interest rates as of 8th October 2024 | ||
| Source: Paisabazaar.com |
Bandhan Bank's interest rate of 7.25 percent for a three-year FD would mean that Rs 1 lakh becomes Rs 1.22 lakh on the date of maturity.
IndusInd Bank
At 7.25 percent, opening a Rs 1-lakh FD with IndusInd Bank would yield Rs 1.22 lakh at the end of the term.
YES Bank
The yield and interest offered by Yes Bank is identical, at Rs 1.22 lakh and 7.25 percent.
Bank of Baroda
Bank of Baroda offers 7.15 percent interest on three-year FDs, the highest among public sector banks. In the three years, a Rs 1-lakh deposit would have grown to Rs 1.21 lakh.
Axis Bank
Axis Bank offers an interest rate of 7.10 percent on three-year FDs, meaning Rs 1 lakh will grow to Rs 1.21 lakh on maturity.
Federal Bank
At an interest rate of 7 percent, Rs 1 lakh in a three-year fixed deposit with the Federal Bank becomes Rs 1.21 lakh on maturity.
HDFC Bank
HDFC Bank's interest rate of 7 percent too results in a balance of Rs 1.21 lakh at the end of the three-year FD term.
Also read | NRE fixed deposit rates: Deutsche Bank, RBL Bank top with up to 8 percent interest rates on two-year tenor
ICICI Bank
The yield and interest offered by ICICI Bank is identical, at Rs 1.21 lakh and 7 percent.
IDFC First Bank
IDFC First Bank also offers an interest rate of 7 percent on three-year FDs. Here too, an FD of Rs 1 lakh will grow to Rs 1.21 lakh on maturity.
Karur Vysya Bank
Rs 1 lakh in a three-year fixed deposit with Karur Vysya Bank becomes Rs 1.21 lakh on maturity, at an interest of 7 percent.
Kotak Mahindra Bank
Kotak Mahindra Bank too offers 7 percent on three-year FDs. If you were to invest Rs 1 lakh, it would have grown to Rs 1.21 lakh on maturity.
Punjab National Bank
Punjab National Bank also offers an interest rate of 7 percent on three-year FDs, growing a deposit of Rs 1 lakh to Rs 1.21 lakh by maturity.
Safety net
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India, guarantees investments in fixed deposits of up to Rs 5 lakh.
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