Fixed Deposit (FD) is a safe and reliable option of investment, which provides sure returns to investors. If you also want to earn more interest while keeping your savings safe, then this article is for you. Here we will talk about the top 3 banks that are currently offering the highest FD interest rates.
What is fixed deposit (FD)?
Fixed deposit (FD) is a financial product in which you deposit your amount for a certain period and get the interest rate fixed by the bank on it. The interest on FD exceeds the normal savings account and is considered a safe medium of investment.
Top 3 banks that are giving the highest FD interest rates
At this time the most FD interest rates are available in banks given below:
| Bank name | Maximum interest rate (%) | 5 years interest rate (%) |
| Suryoday Small Finance Bank | 8.60% | 8.60% |
| Jana Small Finance Bank | 8.25% | 8.20% |
| Unity Small Finance Bank | 8.15% | 8.00% |
1. Suryoday Small Finance Bank
Suryoday Small Finance Bank is currently providing the highest FD interest rates. This bank is giving interest to ordinary citizens up to 8.60% for a period of 5 years.
Properties:
- Additional 0.50% interest to senior citizens.
- Minimum investment amount: ₹ 1000.
- Tax Saving FD option is also available.
Interest Rates:
| Tenure | General citizen (%) | Senior citizen (%) |
| 1 year | 8.25% | 8.75% |
| 2 years | 8.25% | 8.75% |
| 5 years | 8.60% | 9.10% |
2. Jana Small Finance Bank
Jana Small Finance Bank is also an attractive option for investors with highest interest rates. This bank provides maximum interest rate of up to 8.25% to ordinary citizens.
Properties:
- High interest on tax saving FD also.
- Additional benefits to senior citizens.
- Minimum Investment Period: 7 days.
Interest Rates:
| Tenure | General citizen (%) | Senior citizen (%) |
| 1 year | 8.25% | 8.75% |
| 3 year | 8.25% | 8.75% |
| 5 years | 8.20% | 8.70% |
3. Unity Small Finance Bank
Unity Small Finance Bank is offering attractive FD plans to its customers. This bank provides maximum interest rate of up to 8.15% to ordinary citizens.
Properties:
- Additional benefits for senior citizens.
- Minimum deposit amount: ₹ 1000.
- Penalty applied to premature withdrawal.
Interest Rates:
| Tenure | General citizen (%) | Senior citizen (%) |
| 1 year | 7.50% | 8.00% |
| 2 years | 7.75% | 8.25% |
| 5 years | 8.00% | 8.50% |
Fautable things when investing in FD
- Compare the interest rate: Always compare the interest rates of different banks.
- Selection of tenure: Choose the correct term according to your financial needs.
- Senior Citizen Benefits: If you are a senior citizen, avail additional interest.
- Tax Saving Options: Use tax saving FD schemes, which give exemption under Section 80C of the Income Tax Act.
- Premature withdrawal: Understand the penalty on premature withdrawal.
conclusion
In today’s time, the highest FD interest rates offered by small finance banks can prove to be very beneficial for investors. If you want safe and sure returns, you can consider options like Suryoday Small Finance Bank, Jana Small Finance Bank and Unity Small Finance Bank.
Advice:
Select the correct bank and tenure according to your needs and risk capacity. Also, make your investment more effective by taking advantage of tax saving schemes.
Disclaimer
This article is written only for the purpose of providing information. Be sure to get information from the official website or branch of the concerned bank before investing. FD schemes have a low risk, but it is necessary to take care when investing in small finance banks.
