Banks have recently increased their fixed deposit rates to attract more deposits in order to grow their market share and control the widening credit–deposit growth gap.
Consider this: Suryoday Small Finance Bank, Ujjivan Small Finance Bank and RBL Bank are offering the highest interest rate at 8.01 per cent, 8 per cent and 7.55 per cent for a tenure of 1-2 years, according to data compiled by BankBazaar.com. Followed by six banks- Bandhan Bank, DCB Bank, IDFC First Bank, Equitas Small Finance Bank, Fincare Small Finance Bank and Jana Small Finance Bank- offering 7.5 per cent.
When we compare the FD rates of bigger banks such as SBI, HDFC Bank, and ICICI Bank, ICICI Bank and HDFC Bank are offering the maximum interest rate of 7 per cent for 1-2 years while SBI is offering 6.75 per cent.
Here is the list of 10 banks giving the highest interest rates on fixed deposits.
Fixed deposit (FD) is an investment product where in return for a lump sum of money kept in a bank for a fixed period of time you earn a fixed interest rate. The interest rate on FDs varies depending on the bank, the deposit amount, and the tenure of the deposit. Banks also generally offer higher interest rates for senior citizens.
Fixed deposit rates usually increase when the central bank increases the repo rate- the rate at which commercial banks borrow from the Central Bank. The Reserve Bank of India (RBI) has recently increased the repo rate by 225 bps to 6.25 per cent in 2022, to reduce liquidity and control inflation. The high-interest rate also led to a jump in bond yield for 10-year-government bonds. For example, in 2022 the 10-year bond yield jumped by 13 per cent upto 7.61 per cent.
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