Which Banks Offer Highest Fixed Deposit Rates For Less Than Three Years?
FD Rates in India: In the last few months, several banks have upgraded their fixed deposit plans. Currently, Bandhan Bank offers the best FD rates for deposits less than Rs 2 crore and for a tenure of less than 3 years. It is followed by IndusInd Bank and RBL Bank.
New Delhi: Fixed Deposits (FD) have always been a go-to for the common man in India. FD rates in India are among the highest and safest interest rates in the country. In the last few months, several banks have upgraded their fixed deposit plans. The FD interest rates were cut due to the pandemic and now banks are raising them again to attract customers.
Generally, the interest rates are hiked to increase the savings in the economy. This, in return, brings down the inflation rates because, after deposits, there is less disposable money left in the hands of the depositors.
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FD interest rates vary according to the tenure and the amount of deposit. The tenure ranges from 7 days to 10 years. The deposited amount is also categorised in various segments like Below 2 crore, From 2 crore to 5 crores and above 5 crores.
Banks Offering Highest Fixed Deposit (FD) Rates For Less Than Three Years
The following rates are applicable for deposits less than Rs 2 crore and for periods ranging from 2 years to less than 3 years. The data has been collected from various banks’ websites.
- 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
Facts About FD Rates in India That You Need To Know
- Senior Citizens get a different rate of interest on Fixed Deposits. It is generally higher than the interest rates for the common citizens.
- The interest earned on FD is subject to Tax Deducted at Source (TDS).
- Submission of PAN Card is necessary for fixed deposits. In the case of non-submission, higher TDS is deducted.
- A penalty is applicable on premature withdrawal of fixed deposits. The penalty varies from bank to bank.
- Senior Citizen FD rates are not applicable for NRI citizens.
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