Assured returns, tenure flexibility, ease and clarity of investment and higher liquidity are some of the factors behind fixed deposits or term deposits becoming one of the most preferred investment instruments in our nation. These fixed deposits could also work as collateral for loans or credit cards based on the terms and circumstances of the bank that could possibly prove to be superb tools for extra liquidity.
However, the Reserve Bank of India’s selection to maintain the repo price unchanged at a low of 4% for more than a year now to counter the financial fallout of the Covid-19 pandemic has contributed towards most of the banks lowering their FD interest prices.
The reality that FD returns are totally taxable according to the investor’s revenue tax slab price additional reduces the net returns. This has been a worrying trend for numerous danger-averse investors like senior citizens who typically rely on their FD returns not just to meet their monetary objectives but also for their day-to-day costs, according to BankBazaar.
That becoming mentioned, though most of the banks are at the moment supplying interest prices in the variety of 4.25% – 5.50% p.a. for standard FDs amounting to significantly less than Rs 1 crore, there are nonetheless a couple of private and modest finance banks that are supplying above-typical returns up to 7.25% p.a.
Investors can contemplate investing a portion of their funds in the FDs of these banks right after a thorough danger assessment, and if undertaking so is in line with their returns’ expectations and danger tolerance.
So, if you are arranging to invest in an FD for a tenure amongst 3 and 5 years, here’s a list of 10 banks that are supplying the highest interest prices appropriate now. Do note, all the prices talked about beneath are applicable to standard FDs amounting to significantly less than Rs 1 crore. Senior citizen depositors typically get preferential prices by up to 50 basis points more than and above the standard prices.
10 Banks Currently Offering the Highest Interest Rates on 3 to 5-Year Fixed Deposits
Disclaimer: Data taken from respective bank web-sites on June 18, 2021. The highest interest price for FDs with tenures amongst 3 and 5 years have been deemed for information compilation. All interest prices are for standard fixed deposits amounting beneath Rs 1 crore. Data compiled by BankBazaar.com, an on the web marketplace for loans, credit cards and more.