scorecardresearchLooking to invest in a fixed deposit: Here are top interest rates of private

Looking to invest in a fixed deposit: Here are top interest rates of private versus public sector banks

Updated: 29 Jun 2022, 11:38 AM IST

Private banks offer higher fixed deposit rates than public sector banks. Yes Bank tops the list in FD interest rates across all tenures. 

Banks have announced an increase in their FD rates post the RBI's decision to hike repo rates to tame inflation. 

Banks have announced an increase in their FD rates post the RBI's decision to hike repo rates to tame inflation. 

The recent announcement of repo rate hikes by 50 basis points by the Reserve Bank of India (RBI) has prompted many public and private sector banks to raise their fixed deposit rates of different amounts for different tenures. The consequent increase in interest rates has made these investment options dearer. The possibility of banks increasing their fixed deposit rates further in response to the anticipated repo rate increase is nothing short of good news for many investors who park a part of their earnings in these bank deposits. 

Despite many new investment options available in the market today, most investors do not dare ignore fixed deposit investments and benefit from their inherent security and fixed income nature. Though the increasing inflation rate refrains many from parking the majority of their earnings in these funds, decisions regarding financial goals underscore to what extent one must invest in them.

Details of fixed deposit rates reveal how private banks offer higher their customers more interest compared to their public counterparts. For example, DCB Bank Ltd offers 6.60 per cent interest on money saved for three to five years and more. Also, this bank has been offering more interest on fixed deposits of different time periods.

Currently, Yes Bank is offering 6.50 per cent interest to all its customers willing to deposit money for two tenures including three to five years and five years or more followed by Indusland Bank Ltd offering 6.50 per cent on fixed deposits ranging between two and five years and 6.0-6.50 per cent interest on tenure equal to or exceeding five years, respectively. In the medium-tenured fixed deposits ranging from two to five years, Bandhan Bank Ltd offers 6.25 per cent interest.

                               Fixed Deposit Interest Rates (up to Rs. 1 crore as on 20 Jun 2022)

Private Sector Bank Names and Their Fixed Deposit Interest Rates for Different Tenures

Bank Name

6mths - < 1 Year1 – < 2 Years2 – < 3 Years3 – < 5 Years5 Years & above
Bank of Baroda3.7-4.4%5.0-5.45%5.45-5.50%5.35-5.50%5.35%
Bank of India4.35%5.00%5.20%5.20%5.20%
Bank of Maharashtra4.25%-5%5.25%5.25%5.25%5.25%
Canara Bank4.50-4.55%5.30-5.40%5.45%5.70%5.75%
Central Bank of India4.35%5.20%5.30%5.35%5.60%
Indian Bank3.50-4.4%5.10-5.20%5.25%5.35%5.35%
Indian Overseas Bank4.50%5.40-5.45%5.45%5.60%5.60%
Punjab & Sind Bank4.45-4.50%5.25%5.25-5.35%5.55%5.55%
Punjab National Bank4.50%5.20%5.20-5.30%5.30-5.50%5.50-5.60%
State Bank of India4.40-4.60%5.30%5.35%5.45%5.50%
UCO Bank3.71-4.42%5.20%5.20-5.33%5.33-5.70%6.02%
Union Bank of India4.10-4.60%5.35-5.45%5.45-5.50%5.50-5.75%5.75-5.80%

Yes Bank was in news recently for its decision to link its new fixed deposits with RBI’s repo rates, thus, explaining the sudden gain in interest earned by its depositors. With more depositors inclined to invest their money in it, this bank will benefit from lower lending rates.

                           Fixed Deposit Interest Rates (up to Rs. 1 crore as on 20 Jun 2022)
 Public Sector Bank Names and Their Fixed Deposit Interest Rates for Different Tenures
 Bank Name 6mths - < 1 Year 1 – < 2 Years2 – < 3 Years 3 – < 5 Years 5 Years & above
 Axis Bank Ltd. 4.40-4.75% 5.45-5.60% 5.70% 5.70% 5.75%
 Bandhan Bank Ltd. 4.50% 5.75% 6.25% 6.25% 5.60%
 Catholic Syrian Bank Ltd 4.25% 5,0-5.5% 5.50-5.75% 5.75% 5.75-6,00%
 City Union Bank Ltd 4.20-4.75% 5.25-5.55% 5.30% 5.25-5.30% 5.25%
 DCB Bank Ltd 5.70% 5.75-6.50% 6.50% 6.60% 6.60%
 Dhanlaxmi Bank Ltd 4.50% 5.15-5.55% 5.15-5.30% 5.30-5.75% 5.40-5.50%
 Federal Bank Ltd 4.25-4.75% 5.40-5.50% 5.75% 5.75% 5.75-5.95%
HDFC Bank Ltd3.75-4.65%5.35%5.35-5.50%5.50-5.70%5.70-5.75%
ICICI Bank Ltd3.75-4.6%5.30%5.30-5.50%5.50-5.70%5.70-5.75%
IDBI Bank Limited4.0-4.50%5.15-5.25%5.25-5.35%5.60%5.75%
IndusInd Bank Ltd4.50-5.5%6.00%6.50%6.50%6.0-6.50%
IDFC First Bank Ltd4.5-5.75%6.00%6.00%6.0-6.25%6.0-6.25%
Jammu & Kashmir Bank Ltd4.0- 4.5%5.20%5.40%5.50%5.55%
Karnataka Bank Ltd5.00%5.25%5.25-5.40%5.40%5.40-5.50%
Karur Vysya Bank Ltd4.0-4.5%5.40%5.50%5.65%5.80-5.90%
Kotak Mahindra Bank Ltd4.75-5.25%5.50-5.75%5.75%5.90%5.90%
Nainital Bank Ltd4.95- 5.05%5.60%5.60%5.60%5.35-5.60%
RBL Bank Ltd4.50- 5.25%6.25-6.65%6.50%6.30%5.75-6.30%
South Indian Bank Ltd4.10-4.75%5.30%5.30-5.35%5.50%5.80%
Tamil Nadu Mercantile Bank Ltd5.00%5.25-5.40%5.60%5.60%5.60%
YES Bank Ltd4.75-5%6-6.50%6.50%6.50%6.50%

Source: Data provided by Bankbazaar and was taken from the respective banks' websites as of 20 Jun 2022

Among public sector banks, UCO Bank offers the highest interest rate of 6.02 per cent on money deposited for five years and more. Union Bank of India is the next in line to offer 5.75-5.80 per cent interest on fixed deposits made of the same or similar tenures.

Senior citizens’ fixed deposits attract higher interest rates at all banks and across all tenures. In most cases, banks offer 0.50 per cent higher interest on these deposits provided they are not NRE/NRO deposits by Non-Resident Indians (NRIs).

We explain what are tax saving fixed deposits.
First Published: 29 Jun 2022, 11:33 AM IST