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Short-Term FD Rates: These banks offer up to 6.60% interest on three-year FDs

Several banks have sharply hiked interest rates on fixed deposits across tenures after the Reserve Bank of India raised repo rate by 90 basis points in May-June this year.

August 05, 2022 / 09:07 AM IST
Interest rates in the country have been on an onward march since the Reserve Bank of India's (RBI) decision to raise repo rate cumulatively by 90 basis points (one basis point is one-hundredth of a percentage point) in May and June to curb rising inflation. After two successive repo rate hikes, several lenders including Axis Bank, Bank of Baroda, HDFC Bank, and Kotak Mahindra Bank hiked interest rates on fixed deposits (FDs) across term deposit tenures. Smaller private-sector banks now offer interest rates up to 6.60 percent and foreign banks offer interest rates up to 6.25 percent on three-year FDs, data compiled by  BankBazaar  shows.
Interest rates in the country have been on an onward march since the Reserve Bank of India's (RBI) decision to raise repo rate cumulatively by 90 basis points (one basis point is one-hundredth of a percentage point) in May and June to curb rising inflation. After two successive repo rate hikes, several lenders including Axis Bank, Bank of Baroda, HDFC Bank, and Kotak Mahindra Bank hiked interest rates on fixed deposits (FDs) across term deposit tenures. Smaller private-sector banks now offer interest rates up to 6.60 percent and foreign banks offer interest rates up to 6.25 percent on three-year FDs, data compiled by BankBazaar shows.

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Equity markets have been volatile this year, prompting many risk-averse investors to turn to fixed deposits, which are seen as a safe haven. 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 private sector banks and foreign banks offering the best interest rates on three-year FDs.
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DCB Bank offers 6.60 percent interest on three-year FDs. Among private banks, it offers the best interest rate. A sum of Rs 1 lakh invested will grow to Rs 1.22 lakh in three years. The minimum investment required is Rs 10,000.
RBL Bank offers 6.55 percent interest on three-year FDs. A sum of Rs 1 lakh invested in this FD will grow to Rs 1.22 lakh in three years.
RBL Bank offers 6.55 percent interest on three-year FDs. A sum of Rs 1 lakh invested in this FD will grow to Rs 1.22 lakh in three years.
Bandhan Bank, IDFC First Bank, IndusInd Bank and Yes Bank offer 6.50 percent interest on three-year FDs. A sum of Rs 1 lakh invested now in these FDs will grow to Rs 1.21 lakh in three years. The minimum investment required is Rs 10,000 at IndusInd Bank and Yes Bank. At Bandhan Bank, the minimum investment is Rs 1,000.
Bandhan Bank, IDFC First Bank, IndusInd Bank and Yes Bank offer 6.50 percent interest on three-year FDs. A sum of Rs 1 lakh invested now in these FDs will grow to Rs 1.21 lakh in three years. The minimum investment required is Rs 10,000 at IndusInd Bank and Yes Bank. At Bandhan Bank, the minimum investment is Rs 1,000.
DBS Bank and Deutsche Bank offer 6.25 percent interest on three-year FDs. Among foreign banks, these offer the best interest rates. A sum of Rs 1 lakh invested will grow to Rs 1.20 lakh in three years. The minimum investment required is Rs 10,000 at DBS Bank and Rs 20,000 at Deutsche Bank.
DBS Bank and Deutsche Bank offer 6.25 percent interest on three-year FDs. Among foreign banks, these offer the best interest rates. A sum of Rs 1 lakh invested will grow to Rs 1.20 lakh in three years. The minimum investment required is Rs 10,000 at DBS Bank and Rs 20,000 at Deutsche Bank.
Kotak Mahindra Bank offers 5.90 percent interest on three-year FDs. A sum of Rs 1 lakh invested will grow to Rs 1.19 lakh in three years. The minimum investment required is Rs 5,000.
Kotak Mahindra Bank offers 5.90 percent interest on three-year FDs. A sum of Rs 1 lakh invested will grow to Rs 1.19 lakh in three years. The minimum investment required is Rs 5,000.
Several 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.
Several 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.
The data on FDs is as of July 27, 2022, as given on respective websites. Interest rates mentioned are applicable to non-senior citizens (in other words, individuals under the age of 60) and deposit amounts below Rs 1 crore. All listed (BSE) private banks and foreign banks have been considered for data compilation. Banks for which verifiable data is not available have not been considered. For all FDs, quarterly compounding is assumed.
The data on FDs is as of July 27, 2022, as given on respective websites. Interest rates mentioned are applicable to non-senior citizens (in other words, individuals under the age of 60) and deposit amounts below Rs 1 crore. All listed (BSE) private banks and foreign banks have been considered for data compilation. Banks for which verifiable data is not available have not been considered. For all FDs, quarterly compounding is assumed.
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.
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