Bank fixed deposits (FDs) remain a popular choice for investment, catering not only to senior citizens seeking a secure income but also to risk-averse investors. However, an excessive reliance on FDs can be detrimental. It is crucial to evaluate your asset allocation and financial goals to determine the appropriate amount to allocate to FDs.
For instance, relying on FDs to save for a child’s higher education, which is 15 years away, may not be the most effective strategy due to the post-tax interest rate potentially not providing a real return (return above the rate of inflation). On the other hand, if you have a short-term goal, such as planning a holiday in two years, an FD can be a suitable option.
When selecting an FD, it is essential to compare the interest rates offered by different banks. Below is a compilation of banks that provide the highest FD rates for deposits up to ₹1 crore across various tenures.
Here’s the information presented in a table format:
| Bank | 6 months to <1 year | 1 to <2 years | 2 to <3 years | 3 to <5 years | 5 years and above |
|---|---|---|---|---|---|
| DCB Bank Ltd. | 6.25-7.25 | 7.15-7.75 | 7.55-7.90 | 7.40-7.90 | 7.25-7.65 |
| Axis Bank Ltd. | 5.75-6.00 | 6.70-7.10 | 7.10 | 7.10 | 7.00 |
| HDFC Bank Ltd | 4.50-6.00 | 6.60-7.10 | 7.00-7.15 | 7.00-7.20 | 7.00 |
| Indusind Bank Ltd. | 5.00-6.35 | 7.50-7.85 | 7.25-7.50 | 7.25 | 7.00-7.25 |
| IDFC First Bank Ltd. | 4.50-5.75 | 6.50-7.75 | 7.25-7.75 | 7.00-7.25 | 7.00 |
| RBL Bank Ltd. | 4.75-6.05 | 7.00-7.80 | 7.50 | 7.10 | 7.00-7.10 |
| YES Bank Ltd. | 5.00-6.35 | 7.25-7.50 | 7.25 | 7.25 | 7.00-7.25 |
| ICICI Bank Ltd. | 4.75-6.00 | 6.70-7.10 | 7.10 | 7.00 | 6.90-7.00 |
| Canara Bank | 6.15-6.25 | 6.85-7.25 | 6.85 | 6.80 | 6.70 |
| Union Bank of India | 4.4-5.25 | 6.00-6.75 | 6.30 | 6.50-6.70 | 6.70 |
| Dhanlaxmi Bank Ltd. | – | – | – | – | 6.80-7.40 |
| Federal Bank Ltd. | 6.75 | 6.75-7.25 | 6.50-6.75 | 6.50-6.60 | 5.00-6.00 |
| Bank of Baroda | 5.00-6.25 | 6.75-7.15 | 7.25 | 6.50-7.25 | 6.50 |
| Indian Overseas Bank | 4.95-5.35 | 6.50-7.25 | 6.80 | 6.50 | 6.50 |
| Punjab National Bank | 6.00-6.25 | 6.75-7.25 | 6.80-7.00 | 6.50-7.00 | 6.50 |
| State Bank of India | 5.25-5.75 | 6.80-7.10 | 7.00 | 6.50 | 6.50 |
| Jammu & Kashmir Bank Ltd. | 4.75-6.60 | 7.10 | 7.00 | 6.50 | 6.50 |
