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Fixed Deposit Rates: These banks offer up to 7.5% interest for 5-year tenor

The average interest rates of top 10 banks is 6.9 percent for FDs with tenor around 5 years, according to data compiled by BankBazaar

September 12, 2022 / 09:53 AM IST
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Several banks have raised interest rates on fixed deposits (FDs) for a tenor of around 5 years after three consecutive repo rate hikes by the Reserve Bank of India (RBI). The cumulative rate hike is 140 basis points (one basis point is one-hundredth of a percentage point) between May and August to curb rising inflation. Small finance banks lead with the highest interest rates, followed by a foreign bank and small private banks. The public sector banks are not competitive in increasing interest rates like other banks. The average interest rates of top 10 banks is 6.9 percent for FDs with tenor around 5 years, according to data compiled by BankBazaar.
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Fixed deposits offer liquidity and assured interest income at regular intervals. Thanks to the ample liquidity they promise, FDs can be useful while building an emergency corpus. Here are the top 10 banks offering the best interest rates on FDs for tenor around 5 years.
Ujjivan Small Finance Bank offer 7.5 percent interest on FDs. Among small finance banks, this bank offer the best interest rates. The interest rate is applicable for a fixed deposit of Rs 1 lakh. The investment tenor is 75 months.
Ujjivan Small Finance Bank offer 7.5 percent interest on FDs. Among small finance banks, this bank offer the best interest rates. The interest rate is applicable for a fixed deposit of Rs 1 lakh. The investment tenor is 75 months.
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Jana Small Finance Bank offers 7.25 percent on FDs of Rs 1 lakh. The investment tenor is 1825 days.
Deutsche Bank
Deutsche Bank is offering the best interest rates among foreign banks. It offers 7 percent interest on FDs of Rs 1 lakh. The investment tenor is five years. Fincare Small Finance Bank also offers 7 percent interest on FDs of Rs 1 lakh. The investment tenor is 59 months 1 day to 66 months.
AU Small Finance Bank: AU Small Finance Bank launches qualified institutional placement issue. The bank has launched its qualified institutional placement issue on August 3 and fixed the floor price at Rs 590.84 per share for the issue, against current market price of Rs 609.35 on August 3.
AU Small Finance Bank offers 6.9 percent interest on FDs of Rs 1 lakh. The investment tenor is 60 months to 120 months.
IndusInd Bank
IndusInd Bank and Yes Bank are offering the best interest rates among private banks. They offer 6.75 percent interest on FDs of Rs 1 lakh. The investment tenor is 1.5 years to below 61 months at IndusInd Bank. At Yes Bank, the investment tenor is 18 months to 10 years. Suryoday Small Finance Bank also offers 6.75 percent interest on FDs of Rs 1 lakh. The investment tenor is 5 years.
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DCB Bank offers 6.6 percent interest on FDs of Rs 1 lakh. The investment tenor is 18 months to 10 years.

RBL Bank
RBL Bank offers 6.55 percent interest on FDs of Rs 1 lakh. The investment tenor is 36 months to 60 months 1 day.

Savings accounts (2)
Small Finance Banks and smaller private banks are offering higher interest rates to garner newer deposits. The Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the central bank, guarantees investments in fixed deposits of up to Rs 5 lakh.
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The data on FDs is as of September 2, 2022, as given on bank websites. While compiling the data, Bankbazaar has considered highest offered interest rate for tenor around 5 years.
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
first published: Sep 12, 2022 09:53 am
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