Private and foreign banks that offer up to 7% on one-year fixed deposits

Most customers prefer fixed deposits (FDs) for short-term goals as they are safe and returns are assured. With reducing interest rates on fixed deposits across tenures, savers have been hit hard. Often, depositors prefer investing in FDs in the same bank they hold their savings accounts. However, it’s important to know that there are banks that allow you to invest in FDs even if you don’t hold a savings account with those banks. So, choose your bank wisely while investing in FDs.

Smaller private banks offer higher interest

Smaller private banks offer interest rates of up to 7 per cent on one-year FDs, according to data compiled by BankBazaar. These interest rates on one-year FDs are higher compared to leading foreign banks. For instance, IndusInd Bank, Yes Bank and others as shown in the table offer 6.5-7 per cent interest on their one-year FDs. Foreign banks such as Standard Chartered, DBS Bank and Deutsche Bank offer 6.30 per cent, 4.15 per cent and 4 per cent respectively on their one-year FDs.