Key Highlights
- Best FD Rates: Fixed Deposits (FDs) continue to attract investors looking for relatively stable returns.
- Small finance banks, private banks and public-sector banks offer different interest rates depending on the tenure.
- Some small finance banks are offering interest rates of up to 8.25% on selected FD tenures.
- FD rates can change, so investors should verify the latest rate, tenure and eligibility directly with the bank before investing.
Best FD Rates: Where Can You Get Better Returns?
With volatility in the stock market and fluctuations in gold prices, many investors are exploring relatively stable investment options. Fixed Deposits remain a popular choice because the interest rate is generally fixed for the selected tenure.
However, investors should not choose an FD solely because it offers the highest advertised rate. The tenure, premature-withdrawal rules, tax treatment, senior-citizen benefits and applicable deposit-insurance limits should also be considered.
Among the banks mentioned in the available rate information, some small finance banks are offering comparatively higher rates on specific FD tenures.
Small Finance Bank FD Rates
Suryoday Small Finance Bank is offering an interest rate of up to 8.25% on a 5-year FD, according to the provided information.
Utkarsh Small Finance Bank is offering up to 8.10% on a 666-day FD. Meanwhile, Equitas Small Finance Bank is offering up to 8% on a 3-year-and-1-day FD, while ESAF Small Finance Bank is offering up to 8% on an 800-day FD.
Since FD rates may be revised by banks from time to time, investors should check the bank’s latest rate card before booking an FD.
FD Interest Rates Offered by Private Banks
Private-sector banks also offer competitive rates across different deposit tenures.
SBM Bank India is offering 7.65% on FDs with a tenure of more than 18 months and less than 2 years, based on the provided information.
DCB Bank is offering 7.50% on deposits with a tenure of 24 months to less than 25 months.
For larger private banks, HDFC Bank is offering up to 6.50% for selected tenures ranging from 3 years and 1 day to less than 4 years and 7 months.
ICICI Bank is offering up to 6.50% on selected FDs with tenures from 3 years and 1 day up to 10 years. Axis Bank is also offering up to 6.50% on selected FD tenures.
What Are Public-Sector Banks Offering?
Public-sector banks are also offering different interest rates depending on the FD tenure.
Bank of India is offering 6.85% on a 999-day FD, while Punjab & Sind Bank is offering 6.85% on a 666-day FD.
Bank of Baroda is offering 6.75% on a 555-day FD. State Bank of India (SBI) is offering 6.45% on a 444-day FD, while Union Bank of India is offering up to 6.55% on a 555-day FD.
FD Interest Rate Comparison
| Bank | FD Tenure | Interest Rate* |
|---|---|---|
| Suryoday Small Finance Bank | 5 years | 8.25% |
| Utkarsh Small Finance Bank | 666 days | 8.10% |
| Equitas Small Finance Bank | 3 years 1 day | 8.00% |
| ESAF Small Finance Bank | 800 days | 8.00% |
| SBM Bank India | >18 months to <2 years | 7.65% |
| DCB Bank | 24 to <25 months | 7.50% |
| Bank of India | 999 days | 6.85% |
| Punjab & Sind Bank | 666 days | 6.85% |
| Bank of Baroda | 555 days | 6.75% |
| Union Bank of India | 555 days | 6.55% |
| HDFC Bank | Selected tenure | 6.50% |
| ICICI Bank | Selected tenure | 6.50% |
| Axis Bank | Selected tenure | Up to 6.50% |
| SBI | 444 days | 6.45% |
*Rates are based on the information provided in the draft and should be verified against the respective bank’s current official rate card before publication or investment.
Which FD Should You Choose?
The highest interest rate is not necessarily the best FD for every investor. Before investing, compare the interest rate, deposit tenure, premature withdrawal conditions, tax implications and overall financial goals.
For a financial-news website, it is also better to avoid statements such as “FD gives a guaranteed return” without qualification. The interest rate may be fixed for the chosen deposit, but the investor should still consider applicable bank terms, taxes and deposit-insurance rules.
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