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These banks offer up to 7% interest on three-year FDs

Suryoday Small Finance Bank offers the best interest rates, higher than leading private banks

January 11, 2022 / 12:09 PM IST
Amidst the rising number of COVID-19 cases because of the Omicron variant and continuing volatility in the equity markets, many may consider fixed deposits as safe havens. Investing in fixed deposits offers liquidity and ensures interest income periodically. The savings are useful to build emergency corpus in these pandemic times. As the Reserve Bank of India (RBI) has kept the key repo rate unchanged at a low 4 percent  for over a year and a half now, most banks have reduced interest rates on FDs. Despite falling interest rates, small finance banks and smaller private banks offer interest rates of up to 7 percent as per data compiled by  BankBazaar . Here are these banks offering the best interest rates on three-year FDs.
Amidst the rising number of COVID-19 cases because of the Omicron variant and continuing volatility in the equity markets, many may consider fixed deposits as safe havens. Investing in fixed deposits offers liquidity and ensures interest income periodically. The savings are useful to build emergency corpus in these pandemic times. As the Reserve Bank of India (RBI) has kept the key repo rate unchanged at a low 4 percent  for over a year and a half now, most banks have reduced interest rates on FDs. Despite falling interest rates, small finance banks and smaller private banks offer interest rates of up to 7 percent as per data compiled by BankBazaar. Here are these banks offering the best interest rates on three-year FDs.
 Suryoday Small Finance Bank  offers 7 percent interest on three-year FDs. Among small finance banks, this bank offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.23 lakh in three years. The minimum investment required is Rs 1,000.
Suryoday Small Finance Bank offers 7 percent interest on three-year FDs. Among small finance banks, this bank offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.23 lakh in three years. The minimum investment required is Rs 1,000.
 Ujjivan Small Finance Bank  offers 6.5 percent interest on three-year FDs. Rs 1 lakh invested grows to Rs 1.21 lakh in three years. The minimum investment required is Rs 1,000.
Ujjivan Small Finance Bank offers 6.5 percent interest on three-year FDs. Rs 1 lakh invested grows to Rs 1.21 lakh in three years. The minimum investment required is Rs 1,000.
 RBL Bank  offers 6.30 percent interest on three-year FDs. Among private banks, this bank offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.21 lakh in three years.
RBL Bank offers 6.30 percent interest on three-year FDs. Among private banks, this bank offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.21 lakh in three years.
 Yes Bank  offers 6.25 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.20 lakh in three years. The minimum investment required is Rs 10,000.
Yes Bank offers 6.25 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.20 lakh in three years. The minimum investment required is Rs 10,000.
 IndusInd Bank , AU Small Finance Bank and Equitas Small Finance Bank offers 6 percent interest on three-year FDs. Rs 1 lakh invested grows to Rs 1.19 lakh in three years. The minimum investment required is Rs 10,000 and Rs 1,000 at IndusInd Bank and AU Small Finance Bank, respectively.
IndusInd Bank, AU Small Finance Bank and Equitas Small Finance Bank offers 6 percent interest on three-year FDs. Rs 1 lakh invested grows to Rs 1.19 lakh in three years. The minimum investment required is Rs 10,000 and Rs 1,000 at IndusInd Bank and AU Small Finance Bank, respectively.
The smaller private banks and small finance banks are offering higher interest rates to garner newer deposits. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, guarantees investments in fixed deposits of up to Rs 5 lakh.
The smaller private banks and small finance banks are offering higher interest rates to garner newer deposits. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, guarantees investments in fixed deposits of up to Rs 5 lakh.
The data on FDs is as of 5 January 2022, as given on respective websites. Interest rates given are of non-senior citizens and deposit amounts below Rs 1 crore. All listed (BSE) small finance banks and private banks are considered for data compilation. Banks for which verifiable data is not available are not considered. For all FDs, quarterly compounding is assumed.
The data on FDs is as of 5 January 2022, as given on respective websites. Interest rates given are of non-senior citizens and deposit amounts below Rs 1 crore. All listed (BSE) small finance banks and private banks are considered for data compilation. Banks for which verifiable data is not available are not 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.
first published: Jan 11, 2022 12:09 pm
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