Fixed deposits offer guaranteed returns, which differentiates them from market-linked instruments and makes them an ideal option to secure your capital.
This is the best time to get a Fixed Deposit (FD) . This is because right now all the banks are giving bumper interest on FD. In the coming days, RBI will cut the repo rate. Then there is a possibility of reduction in interest rates. Fixed Deposit (FD) ensures guaranteed returns. An important advantage of FD is that you have the flexibility to choose the terms to suit your financial needs, allowing you to use your funds as needed. Additionally, you have the option to withdraw funds with the interest earned and reinvest them. Let us know which banks are giving the highest interest on FD in the period of 1 to 3 years.
FDs ranging from a few weeks to years
Short and medium-term FDs typically have tenures ranging from a few weeks to a few years, appealing to investors who prefer liquidity while still getting better returns than a traditional savings account. The key advantage in short-term FDs is liquidity. Investors have the opportunity to allocate their funds for a short period of time without having to commit for a long period of time. This facility is particularly beneficial for individuals who need funds in the near future.
The safest investment option
Moreover, fixed deposits are considered one of the safest investment options, especially when placed with reputed banking institutions. They are secured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance, which covers amounts up to Rs 5 lakh per bank for each depositor, providing an additional layer of protection. Fixed deposits offer guaranteed returns, which sets them apart from market-linked instruments and makes them an ideal option to secure your capital. In 2024, interest rates for short- and medium-term fixed deposits vary from 4.5% to 8.25% per annum, depending on the bank and the period of deposit. To woo depositors, small finance banks often offer more competitive interest rates than their larger counterparts.
Also Read-Â Â HDFC vs ICICI vs Axis Bank FD Interest Rates: Which bank is giving how much interest on 2-3 year FD? See here
| Interest Rates on FD Deposits (%) | ||||
| Bank | <1 year | 1 to 2 years | Â 2 to 3 years
| |
| Bank of Maharashtra | 6.9 | 7.15 | 7.25 | |
| Bank of Baroda | 7.15 | 7.3 | 7.15 | |
| Bank of India | 6 | 7.25 | 6.75 | |
| Canara Bank | 6.25 | 7.25 | 6.85 | |
| Central Bank of India | 6.25 | 7.45 | 6.5 | |
| Indian Bank | 7.05 | 7.25 | 6.7 | |
| Indian Overseas Bank | 5.75 | 7.3 | 6.8 | |
| Punjab National Bank | 7.05 | 7.25 | 7 | |
| Punjab & Sind Bank | 7.15 | 7.3 | 6.3 | |
| State Bank of India | 6.5 | 7.25* | 7 | |
| UCO Bank | 5.5 | 7.05 | 6.3 | |
| Union Bank | 7.4 | 7.25 | 6.7 | |
| Axis Bank | 6 | 7.2 | 7.1 | |
| Bandhan Bank | 4.5 | 8 | 7.25 | |
| Catholic Syrian | 7.25 | 7.75 | 7.1 | |
| City Union Bank | 7.5 | 7 | 6.5 | |
| DCB Bank | 7.25 | 8.05 | 7.55 | |
| Dhanlaxmi Bank | 5 | 7.25 | 6.5 | |
| Federal Bank | 6.5 | 7.35 | 7.4 | |
| HDFC Bank | 6 | 7.25 | 7.35 | |
| ICICI Bank | 6 | 7.25 | 7 | |
| IDBI Bank | 7.05 | 7.35 | 7 | |
| IDFC First Bank | 5.75 | 7.75 | 7.25 | |
| IndusInd Bank | 6.5 | 7.75 | 7.25 | |
| J & K Bank | 6.25 | 7 | 7 | |
| Karnataka Bank | 6.75 | 7.5 | 6.5 | |
| Bank Box | 7 | 7.4 | 7.15 | |
| Karur Vysya Bank | 7.4 | 7.5 | 7.6 | |
| RBL Bank | 6.05 | 8.1 | 7.5 | |
| South Indian Bank | 5 | 7.25 | 7 | |
| Tamilnad Mercantile Bank | 6 | 7.5 | 6.75 | |
| TNSC Bank | 6.75 | 7.75 | 6.75 | |
| Yes Bank | 6.35 | 8 | 7.25 | |
| AU Small Finance Bank | 7.25 | 8 | 7.5 | |
| Equitas Small Finance Bank | 6.25 | 8.5 | 8.25 | |
| ESAF Small Finance Bank | 6 | 8.25 | 8.25 | |
| Jana Small Finance Bank | 8 | 8.25 | 8.25 | |
| Ujjivan Small Finance Bank | 7 | 8.25 | 7.75 | |
