Amidst the rising number of COVID-19 cases because of the Omicron variant, it is important to build an emergency corpus and invest a part of your savings in liquid assets. Despite falling interest rates, invest a certain percentage of your portfolio in fixed deposits (FDs) that offer higher returns for a one-year tenure. Make a thorough risk assessment and carry out due diligence of the bank before investing in its FDs.
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Despite falling interest rates, smaller and new private banks offer interest rates of up to 6 percent on one-year FDs, according to data compiled by BankBazaar. Here are the private banks offering the best interest rates on 1-year fixed deposits.
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IndusInd Bank and RBL Bank offer 6 percent interest on one-year FDs. A sum of Rs 1 lakh grows to Rs 1.06 lakh in one year. At IndusInd Bank, the minimum investment required is Rs 10,000.
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Yes Bank offers 5.75 percent interest on one-year FDs. A sum of Rs 1 lakh grows to Rs 1.05 lakh in one year. The minimum investment required is Rs 10,000.
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DCB Bank offer 5.55 percent interest on one-year FDs. A sum of Rs 1 lakh grows to Rs 1.05 lakh in one year. The minimum investment required is Rs 10,000.
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Bandhan Bank and IDFC First Bank offer 5.52 percent interest on one-year FDs. A sum of Rs 1 lakh grows to Rs 1.05 lakh in one year. At Bandhan Bank, the minimum investment required is Rs 1,000.
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Dhanlaxmi Bank and Karur Vysya Bank offer 5.15 percent interest on one-year FDs. A sum of Rs 1 lakh grows to Rs 1.05 lakh in one year. The minimum investment required is Rs 100.
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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.
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The data on FDs is as of January 12, 2022, as given on respective websites. Interest rates given are of non-senior citizens and deposit amounts below Rs 1 crore. All listed (BSE) 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.
