After the Reserve Bank of India (RBI) hiked the repo rate to 4.90 per cent during the Monetary Policy Committee (MPC) meeting in June, the interest rates on fixed deposits (FDs) are on the rise. The central bank’s decision has prompted debt investors to put their money in FDs which are the most sought after investment option for them owing to growing interest rates.
These instruments are the most popular choice for investors who have a zero-risk appetite and want to build wealth without depending on market-based returns as FDs offer fixed returns and a flexible deposit period – from 7 days to 10 years – making them the top choice for short, mid and long-term financial goals. Thus, for investors looking to invest in short-term instruments, like for a period of one year, the below-mentioned private banks are now assuring over 6 per cent interest rates.
Yes Bank
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The private sector lender raised interest rates on fixed deposits below Rs 2 crore on June 18, 2022. The bank is now offering an interest rate of 6 per cent for the general public and 6.50 per cent for senior citizens on 1-year maturity FDs.
IndusInd Bank
The country’s fifth largest private sector bank by market cap, raised the interest rates for fixed deposits below Rs 2 crore on July 21, 2022. On FDs maturing in 7 days to 61 months and above the bank is offering an interest rate ranging from 3.25 per cent to 6 per cent for the general public and 3.75 per cent to 6.50 per cent for senior citizens. The private sector lender is presently paying an interest rate of 6 per cent for the general public and 6.50 per cent for elderly people on term deposits that mature in a year. The bank is offering 6.50 per cent interest for FDs maturing in 2 years or less than 61 months for the general public and 7 per cent for senior citizens.
DCB Bank
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The private sector lender has hiked the interest rates on resident Indian FDs below Rs 2 crore. The bank is offering an interest rate ranging from 4.80 per cent to 6.60 per cent for the general public and 5.30 per cent to 7.10 per cent for senior citizens on deposits maturing in 7 days to 120 months. For FDs that mature in a year, DCB Bank is offering an interest rate of 6.10 per cent to the general public and 6.60 per cent to senior people.
RBL Bank
The private sector lender last revised its interest rates on FDs of less than Rs 2 crore on June 8, 2022. The bank is offering an interest rate of 6.25 per cent for the general public and 6.75 per cent for senior citizens on deposits maturing in one year.
Bandhan Bank
The bank increased its FD interest rates on July 4, 2022. On deposits maturing in 7 days to 10 years, Bandhan Bank is offering an interest rate ranging from 3 per cent to 5.60 per cent for the general public and 3.75 per cent to 6.35 per cent for senior citizens. On deposits that mature in a year, the bank is now offering an interest rate of 6.25 per cent to the general public and a 7 per cent interest rate to senior citizens.
IDFC First Bank
The bank revised its FD interest rates across various tenors on deposits below Rs 2 crore on July 1, 2022. The bank is offering interest rates ranging from 3.50 per cent to 6 per cent to the general public and 4 per cent to 6.50 per cent to elderly persons on FDs maturing in 7 days to 10 years. For deposits maturing in 1 year, the bank is offering an interest rate of 6.25 per cent to the general public and 6.75 per cent to elderly people on FDs maturing in 1 year 1 day to 2 years.
