Top 4 banks offering interest rates up to 7.25%, in 3 years, fixed deposits (FD)
Term deposits are not the best choice for new generation investors, however, FDs still hold a huge position in the investment arena. Not only the older generation, but many other people also keep some of their money in the FD for security reasons. The insurance behind FD is the most lucrative factor for investors. Although, according to some analysts, FDs should not be viewed as an investment for a lot of profitability, but rather as saving money for investors.
Over the past 4 to 5 years, investors have complained about FD primarily because of their low interest rate. All short-term FDs and long-term FDs now offer low interest rates, mostly around 5% for the public. Interest rates for seniors are about 0.75% higher. But earlier, in 2015, FD rates remained around 8.25%, which has worsened over the years.
However, some banks offer better interest rates than others in 3 years FD, and the top 4 banks are listed below.
Interest rate on FD for 3 years:
|Bank name||Interest rate for the public||Interest rate for seniors|
|Small Ujjivan Financial Bank||6.50%||7.25%|
|Jana Small Finance Bank||6.75%||7.25%|
|Small Equitas Financial Bank||6.00%||5.50%|
The Ujjivan Small Finance Bank, Jana Small Finance Bank and Equitas Small Finance Bank are the top three small financial banks in India. Yes Bank, on the other hand, is another reputable bank in the country. In addition, RBI will secure your FD money up to Rs. 5 lakhs, making interest in FD absolutely safe, at any RBI registered bank in the country. So investing in a small FD financing bank will be no different from investing in any other bank.
Interest rates on FDs depend on the repo rate set by the RBI, which now stands at 4%. On the other hand, the repo rate is now 3.55%. At the last MPC meeting on December 8, 2021, the central bank maintained the repo rate for 9 consecutive months. Thus, the rates of FD also remained unchanged in the country.
(Also Read: FD Interest Rates Are Low, Where Should You Invest Now?)
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Article first published: Friday December 17th, 2021, 11:04 PM [IST]