Planning to invest in FDs? Check banks offering highest interest on deposits for less than 3 Years

FDs are categorised into three segments: below Rs 2 crore, from Rs 2 crore to Rs 5 crores and above Rs 5 crores.

New Delhi: In India, several investors rely on fixed deposits (FDs) to save for their future. Investors get safe returns on FD investments. While, in the recent past, the interest rates on fixed deposits had become unattractive, several banks have now increased interest on FDs to make them more popular among investors.

The interest rates were cut by the banks to offer loans at cheaper rates to borrowers to increase the spending in the country. But with the rising inflation, the banks have now decided to increase the interest rates, offering a decent opportunity to investors to open their FD accounts. 

The interest rates on fixed deposits depend on the term of the investment. Usually, an FD with a longer maturity period will offer better returns than FDs with a shorter maturity time. Most banks offer fixed deposits with tenures ranging from seven days to 10 years. 

Another factor that determines the interest rate on fixed deposits is the amount of money you want to invest. Generally, interest rates offered on FDs are categorised in three segments: below Rs 2 crore, from Rs 2 crore to Rs 5 crores and above Rs 5 crores. 

Banks Offering Highest FD Interest Rates For Less Than 3 Years

Bandhan Bank – 6.25 per cent

IndusInd Bank – 6 per cent

RBL Bank – 6 per cent

DCB Bank – 5.50 per cent

Axis Bank – 5.40 per cent

HDFC Bank – 5.20 per cent

State Bank of India (SBI) – 5.10 per cent

Banks offer 50 basis points more interest rates on investments made by senior citizens. So, for example, if a senior citizen makes an FD investment in Bandhan Bank for about 3 years, the bank will offer a return at a 6.25% rate. Also Read: Dealshare becomes 5th unicorn of 2022, raises $165 million at over $1.6 billion valuation

Moreover, investors should note that the interest earned on FD is subject to Tax Deducted at Source (TDS), and they have to submit their PAN card details before making an investment. Also Read: Amazon Grand Gaming Days Sale: Check top offers on laptops, accessories, consoles