Despite the global trend of decreasing interest rates, with the US Federal Reserve recently cutting key rates by 50 basis points (bps), the Reserve Bank of India (RBI) is unlikely to lower the repo rate due to ongoing concerns about food inflation.
However, many Indian banks are still offering more than 8% interest on fixed deposits (FDs).
Several banks have revised their FD rates in September, and here are the top banks providing competitive interest rates.
Current FD Interest Rates
Bandhan Bank: FD interest rates range from 3% to 8.05%, depending on the tenure of the FD and the individual’s credit profile.
RBL Bank: Offering an attractive interest rate of 8.10% per annum on FDs.
SBM Bank India: Provides the highest interest rate, offering 8.25% on FDs.
YES Bank: Paying a competitive interest rate of 8% per annum.
Senior citizens aged 60 years and above are eligible for an additional 0.5% interest on their FD, which helps boost their returns.
How to Open a Bank FD
Fixed deposits can be opened both online and offline. To open an offline FD account, customers need to visit a bank branch and complete the KYC (Know Your Customer) process.
FD accounts can be opened with a minimum deposit of ₹100, though this may vary depending on the bank.
FD tenures range from 7 days to 10 years, and premature withdrawals are allowed, though they may incur a penalty.
