Fixed deposits (FDs) remain a popular investment option for risk-averse investors seeking stable returns. With the repo rate cut by 100 basis points this year, several banks have reduced interest rates on FDs. Here are the top 10 private and public sector banks that offer the highest interest rates on fixed deposits. The best rates offered by these banks on five-year FDs (of up to Rs 1 crore) for resident, retail, and non-senior citizens have been taken into account. The data, as of July 25, has been compiled by BankBazaar.
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IndusInd Bank offers an interest rate of 6.75 percent on FDs with a tenor of five years. Among private banks, this Mumbai-based lender offers the best rate. In five years, a Rs 1-lakh FD would grow to Rs 1.34 lakh.
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Axis Bank and ICICI Bank offer 6.6 percent interest rate for a five-year FD . A Rs 1 lakh deposit would grow to Rs 1.33 lakh on the date of maturity.
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HDFC Bank and Kotak Mahindra Bank offer an interest rate of 6.4 percent for a five-year FD, which means that Rs 1 lakh will become Rs 1.32 lakh on the date of maturity.
Canara Bank offers an interest rate of 6.50 percent, the highest among public sector banks. In five years, a Rs 1-lakh FD would grow to Rs 1.33 lakh.
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Bank of Baroda and Union Bank of India offer interest rates of 6.4 percent. In five years, a Rs 1-lakh FD would grow to Rs 1.32 lakh.
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State Bank of India offers an interest rate of 6.3 percent for a five-year FD. It means that Rs 1 lakh would become Rs 1.32 lakh on the date of maturity.
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Punjab National Bank offers an interest rate of 6.1 percent for a five-year FD. It means that Rs 1 lakh would grow to Rs 1.31 lakh on the date of maturity.
The Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the Reserve Bank of India, guarantees investments in fixed deposits of up to Rs 5 lakh.
