A fixed deposit (FD) is best suited for investors with low-risk tolerance. However, one should check and compare interest rates to invest in the bank and/or NBFC with the best FD rates. At Paisabazaar, we provide you with complete information on banks and financial institutions offering fixed deposits.
*Fixed Deposit Interest Rates are on deposits below Rs.2 crore for resident individuals. (Interest rates updated on 20th July 2021)
Highest Fixed Deposit Rate in 2021
Fixed Deposits or FDs are one of the most popular investment products in India. They are largely preferred by individuals who have low to no risk appetite and want guaranteed returns on their investments. The highest FD rate available currently is 8% by Muthoot Capital for a tenure of 5 years. Utkarsh Small Finance Bank, Suryodaya Bank, and Jana Bank are currently giving the best FD rates i.e 6.75% for regular citizens. Among the large banks in India, RBL, SBM, YES, and Indusind are giving the 6.5% for regular customers and up to 7.25% for senior citizens.
Checkout the best FD Rates 2021 Here.
As can be seen, small finance banks are currently offering higher interest rates than most large banks. While some customers may choose to invest in large and established banks, they should note that deposits made in Small Finance Banks (just like commercial banks) are covered under the depositor insurance program of Deposit Insurance and Credit Guarantee Corporation (DICGC). This means that bank deposits (commercial as well as small finance banks) of up to Rs. 5 lakh, including fixed, recurring, savings and current deposits, per depositor per bank, are insured.
Apart from guaranteed returns, fixed deposits offer another benefit to investors – credit card against FD. Such cards are secured credit cards and are a good option for those who do not have a good credit score or are new to credit. Such people may find it difficult to get a credit card but with a fixed deposit, it gets easy.
This credit card, being a secured credit card will help you strike a balance in your credit mix and improve your credit score while adding to your investment with guaranteed (currently 6.5% of interest) returns on FD.
Mergers effective from 1st April 2020:
United Bank of India and Oriental Bank of Commerce (OBC) merged with Punjab National Bank (PNB)
Corporation Bank and Andhra Bank merged with Union Bank of India