Top 10 Banks With Higher Interest Rates On 2-3 Year Fixed Deposits
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2 Year FD Interest Rates
Below are the top 10 banks which are currently promising higher interest rates on 2-year fixed deposits for a deposit amount of less than Rs 2 Cr.
| Small Finance Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|
| Utkarsh Small Finance Bank | 6.75% | 7.25% | 19.10.2020 |
| Suryoday Small Finance Bank | 6.50% | 6.50% | 21.06.2021 |
| Jana Small Finance Bank | 6.50% | 7.00% | 07.05.2021 |
| Ujjivan Small Finance Bank | 6.50% | 7.00% | 05.03.2021 |
| AU Small Finance Bank | 6.25% | 6.75% | 01.04.2021 |
| Private Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
| RBL Bank | 6.10% | 6.60% | 01.06.2021 |
| Yes Bank | 6.00% | 6.50% | 03.06.2021 |
| IndusInd Bank | 6.00% | 6.50% | 04.06.2021 |
| DCB Bank | 6.00% | 6.50% | 15.05.2021 |
| Karur Vysya Bank | 5.50% | 6.00% | 11.01.2021 |
| Source: Bank Websites |
3-Year FD Interest Rates
The top 10 banks now offering higher interest rates on 3-year fixed deposits for a deposit amount of less than Rs 2 crore are listed below.
| Small Finance Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|
| Utkarsh Small Finance Bank | 6.75% | 7.25% | 19.10.2020 |
| Ujjivan Small Finance Bank | 6.75% | 7.25% | 15.05.2021 |
| Jana Small Finance Bank | 6.50% | 7.00% | 04.06.2021 |
| AU Small Finance Bank | 6.50% | 7.00% | 11.01.2021 |
| Suryoday Small Finance Bank | 6.25% | 6.50% | 03.06.2021 |
| Private Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
| IndusInd Bank | 6.50% | 7.00% | 04.06.2021 |
| DCB Bank | 6.50% | 7.00% | 15.05.2021 |
| RBL Bank | 6.10% | 6.60% | 01.06.2021 |
| Yes Bank | 6.00% | 6.50% | 03.06.2021 |
| Karur Vysya Bank | 5.50% | 6.00% | 11.01.2021 |
| Source: Bank Websites |
Conclusion
Bank fixed deposits (FDs) are often the first place of reference for investors with a low-risk profile and those looking to fulfil their both short-term and long-term goals with assured returns. One of the biggest advantages to investing in fixed deposits is that the interest rates on bank FDs are guaranteed until maturity, regardless of changes in the banks’ FD card rates in the future. For example, if an investor opens a two-year bank fixed deposit at 6.75 per cent p.a., the interest rate will remain the same until the expiration of the two-year maturity period.
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India, covers fixed deposits made with scheduled banks (RBI). In the case of a bank collapse, the insurance policy covers cumulative bank deposits, which include fixed deposits, savings accounts, recurring deposits, and current accounts, of up to Rs 5 lakh per bank, per depositor. The above-listed banks with 2-3 year fixed deposits are currently providing much higher returns than that of small saving schemes and are also covered by DICGC. So if you are an investor with less exposure to mutual funds and market-based returns, then placing a fixed deposit in any of the above-discussed banks can be a good bet if you have a medium-term goal.
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