Most investors prefer fixed deposits (FDs) for short-term reasons because they are stable and returns are assured. But the interest rates on FDs have fallen sharply over the last year, as repo rates have been steadily lowered by the Reserve Bank of India (RBI). Banks have thus followed the same direction and continued to cut interest rates over fixed deposits. However, during the falling interest rate scenario, many as five financial institutions and two small finance banks are providing interest rates of 6 per cent or more on one year term FDs. India’s two major banks SBI and Bank of Baroda are currently offering 5.10 per cent interest rate per annum, And on the other hand, ICICI Bank, Axis Bank, and HDFC Bank are currently fetching an interest rate of 5 per cent, 5.15 per cent and 5.10 per cent annually on 1 year FD to the investors. Let’s hunt for the banks which are still providing higher interest rate of up to 7 per cent on one-year FDs for a minimum investment amount of Rs.100 up to a maximum of Rs.10,000.
|Banks||Interest Rate in % per annum|
|IDFC First Bank||6.75%|
|Ujjivan Small Finance Bank||6.50%|
|AU Small Finance Bank||5.50%|
|Karur Vyasa Bank||5.50%|