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These private banks offer up to 6.5% interest on three-year FDs

Smaller private banks offer higher interest rates compared to leading ones.

March 23, 2022 / 08:17 AM IST
Due to continuing volatility in the equity markets, many investors may consider fixed deposits as safe havens. Investing in fixed deposits offers liquidity and ensures interest income periodically. The savings are useful to build an emergency corpus. 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, smaller private banks offer interest rates of up to 6.5 percent as per data compiled by  BankBazaar . Here are some banks offering the best interest rates on three-year FDs.
Due to continuing volatility in the equity markets, many investors may consider fixed deposits as safe havens. Investing in fixed deposits offers liquidity and ensures interest income periodically. The savings are useful to build an emergency corpus. 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, smaller private banks offer interest rates of up to 6.5 percent as per data compiled by BankBazaar. Here are some banks offering the best interest rates on three-year FDs.

 IndusInd Bank  offers 6.5 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. The minimum investment required is Rs 10,000.
IndusInd Bank offers 6.5 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. The minimum investment required is Rs 10,000.
 RBL Bank  offers 6.30 percent interest on three-year FDs. 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. A sum of Rs 1 lakh invested grows to Rs 1.21 lakh in three years.
 Bandhan Bank ,  DCB Bank  and  Yes Bank  offer 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 at DCB Bank and Yes Bank. At Bandhan Bank, the minimum investment required is Rs 1,000.
Bandhan Bank, DCB Bank and Yes Bank offer 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 at DCB Bank and Yes Bank. At Bandhan Bank, the minimum investment required is Rs 1,000.

 IDFC First Bank  offers 6 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.20 lakh in three years.
IDFC First Bank offers 6 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.20 lakh in three years.

 Karur Vysya Bank  offers 5.65 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.18 lakh in three years.
Karur Vysya Bank offers 5.65 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.18 lakh in three years.
The smaller private 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 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 March 16, 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 March 16, 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: Mar 23, 2022 08:17 am
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