These five banks offer up to 7% interest on 3-year FDs

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Investing in fixed deposits offers liquidity and ensures interest income periodically. As the Reserve Bank of India (RBI) has kept the key repo rate unchanged at 4 percent  for over a year now, most banks have reduced interest rates on fixed deposits (FDs). Despite falling interest rates, smaller private and small finance banks offer interest rates of up to 7 percent on three-year FDs, as per data compiled by BankBazaar. Here are the top five banks offering the best interest rates on three-year FDs.

Suryoday Small Finance Bank offers 7 percent interest on three-year FDs. Among small finance banks, this bank offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.23 lakh in three years. The minimum investment required is Rs 1,000.

Ujjivan Small Finance Bank offers 6.5 percent interest on three-year FDs. Rs 1 lakh invested grows to Rs 1.21 lakh in three years. The minimum investment required is Rs 1,000.

RBL Bank offers 6.30 percent interest on three-year FDs. Among private banks, this bank offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.21 lakh in three years.

Yes Bank offers 6.25 percent interest on three-year FDs. A sum of Rs 1 lakh invested grows to Rs 1.20 lakh in three years. The minimum investment required is Rs 10,000.

IndusInd Bank offers 6 percent interest on three-year FDs. Rs 1 lakh invested grows to Rs 1.19 lakh in three years. The minimum investment required is Rs 10,000.

The smaller private banks and small finance banks are offering higher interest rates to garner newer deposits. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, guarantees investments in fixed deposits of up to Rs 5 lakh.

The data on FDs is as of 22 September 2021, as given on respective websites. Interest rates given are of non-senior citizens and deposit amount below Rs 1 crore. All listed (BSE) small finance banks and private banks are considered for data compilation. Banks for which verifiable data is not available are not considered. For all FDs, quarterly compounding is assumed.

 

 

 

 

 

Source:livemint

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