Banks that Offer Reasonably Good Interest Rates on Fixed Deposits Even After COVID-19
Last Updated : July 20, 2020, 11:58 a.m.
Fixed Deposits are one of the most popular investment options for individuals who want to park their money for not only saving purposes but also to earn interest on the same. There are so many public and private banks that offer the Fixed Deposit facility to the customers for a tenure of as short as 7 days to a maximum of 10 years. But due to the recent ongoing pandemic caused by COVID-19, banks have been forced to cut interest rates on fixed deposits on both short-term and long-term deposits. As the economy is in tatters due to the slowdown caused by COVID-19, some of the other reasons behind this rate cut are surplus liquidity and sluggish credit growth.
For example, the State Bank of India, the largest lender of India, is providing an interest rate of 2.90% per annum for Fixed Deposits between seven days and 45 days, while the interest rate on Savings Account with a balance upto INR 1 lakh is fixed at 2.70% per annum. You can clearly see how low the difference is between them. But there are still some banks that have been offering good interest rates on Fixed Deposits even after COVID-19. We will be covering all such banks that have been providing higher FD interest rates. You can get higher returns on the fixed deposits opened at these banks. Without any further delay, keep reading to know such banks.
State Bank of India (SBI) Fixed Deposit
When we are covering Banks that offer good Interest rates on FD, it is still important to mention the State Bank of India (SBI), which is the largest bank of India. SBI Fixed Deposit has managed to provide competitive interest rates to their customers even after COVID-19. There are several FD schemes of SBI that you can opt for such as Tax Saving SBI Fixed Deposit Scheme, SBI FD Reinvestment Scheme, SBI Multi Option Scheme, etc.
Interest rate is the most important thing that people look at and SBI Fixed Deposit Interest Rates range from 2.90% - 6.20% per annum on deposits below INR 2 Crore that is pretty high considering the current market conditions. You need to consider this fact that interest rates will be lower if you are looking to have an FD for a short tenure. For example, SBI provides only 2.90% to 4.40% per annum if you are choosing a tenure between 7 days to 1 year. However, on choosing a higher tenure, the interest rate can go as high as 5.40% per annum while Senior Citizens can get interest rates upto 6.20% per annum, which is 80 basis points higher than the interest rates given to citizens aged below 60 years.
Punjab National Bank (PNB) Fixed Deposit
Punjab National Bank (PNB) also offers an efficient Fixed Deposit Scheme to its customers with a Nomination and Loan/Overdraft facility. Catering to several classes of customers, PNB provides different FD schemes to customers from which they can choose according to their convenience, such as Scheme for Road Accident, Multi-benefit, Regular FD Schemes, PNB Uttam Term Deposit Scheme, etc. Like other lenders, PNB also provides a tenure of 7 days to a maximum of 120 months.
PNB Fixed Deposit interest rates range from 2.90% - 5.75% per annum on deposits below INR 2 Crore. Senior Citizens can get additional interest rates of 0.50% than those below 60 years of age if the deposit amount is less than INR 2 crore. With the help of PNB Tax Saver FD, Retired Senior Citizens and Staff Members can get upto 6.30% per annum interest rates on their fixed deposits. If you are looking to get higher returns on your deposit amount, you should go for a longer tenure as interest rates tend to be on a lower side when you choose a short FD tenure. PNB offers 3.00% to 3.75% per annum interest rate on the amount deposited for 7 days to 45 days. While any amount deposited for more than 1 year can get you interest rates ranging from 5.25% to 6.05% per annum.
HDFC Bank Fixed Deposit Scheme
HDFC is one of the leading private banks of India and its Fixed Deposit scheme is one of the popular ones among the Indian customers due to lucrative interest rates. One of the reasons behind its popularity is the convenience it provides to the customers. An individual can open a fixed deposit by logging into their Net Banking. And not only this, but individuals can also get upto 90% of the overall FD value as the loan amount in case of any emergency.
HDFC Bank mainly provides three types of FD Schemes such as Regular FD Schemes, HDFC Tax Saving FD Scheme, and Senior Citizen FD. HDFC Fixed Deposit Interest Rates range from 2.50% - 6.25% per annum on deposits below INR 2 Crore and you can see that it is pretty high considering the present condition of the market. Your interest rates will also be higher on choosing a longer tenure as compared to a short tenure. Like when you choose to open an FD for more than 3 years, you can get 5.50% per annum on your deposit while Senior Citizens can get 6.00% to 6.25% per annum on their deposits. You can see how Senior Citizens can get an additional 0.75% premium on the FD for a tenure of 5 years 1 day to 10 years.
ICICI Bank Fixed Deposit Scheme
Even after the rate cut due to the ongoing pandemic caused by the COVID-19, ICICI Bank is providing as high as 5.50% per annum to General Individuals and 6.30% per annum interest rate to Senior Citizens on its fixed deposit scheme. So, if you are a normal individual who is putting an amount of INR 5 lakh as the Fixed Deposit for 7 years, you would get INR 2,32,882 as the Interest Amount when the period ends at the present rate. You can do this calculation with the help of the ICICI Bank FD Calculator. Generally, ICICI Bank FD Interest Rates range from 2.50% - 6.30% per annum.
You can see how ICICI Bank is one of those banks that offer good interest rates on Fixed Deposits. The fact is not hidden from anyone that ICICI Bank is one of the top four banks of India and provides several schemes such as Regular FD Account, Tax Saving FD Account, FD with GTP Life Cover, etc, to its customers.
Bank of India Fixed Deposit
One of the leading public sector banks of India, Bank of India is also in the list of Banks that offer a good interest rate on Fixed Deposits. With interest rates as high as 5.50% per annum on deposits below INR 2 crore to the normal citizens, Bank of India FD is one of the most popular investment options among the Indian customers. The FD Tenure ranges from 7 days to 10 years and its interest rates range from 2.85% - 5.55% per annum. The only thing that you need to remember that when you are choosing a tenure of more than 5 years to enjoy the higher interest rates, the minimum deposit must be INR 1 lakh otherwise you cannot open an FD.
Bank of India provides a range of Fixed Deposit schemes such as BOI Double Benefit Term Deposit Scheme, Quarterly/Monthly Deposit Scheme, Short Term Deposit Scheme, etc. You can also nominate your spouse or children as the beneficiaries of the investment.
Axis Bank Fixed Deposit
When you are looking for banks that offer good interest rates on Fixed Deposit after COVID-19, you must check the interest rates provided by the Axis Bank, which is undoubtedly one of the leading private banks of India. On average, Axis Bank FD Interest Rates range from 2.50% - 6.50% per annum. Like every other lender, Axis Bank provides interest rates according to the tenure chosen by you. For example, if you are choosing tenure of anywhere between 3 months to 6 months for deposits below INR 2 crore, you will get 4.10% per annum on your FD. Whereas, you will be getting 5.50% per annum on deposits from 2 years to 10 years. Senior Citizens can get fixed deposit interest rates of as high as 6.15% per annum.
You need to remember that you cannot withdraw your deposit amount until the completion of fixed tenure chosen by you. The minimum amount with which you can open an FD is INR 5,000 if you are doing it via Net Banking or Mobile Application.
Bank of Baroda Fixed Deposit
After its recent merger with Dena Bank and Vijaya Bank, Bank of Baroda has emerged as one of the top public sector banks of India. With its Fixed Deposit facility, you can get as much as 5.30% per annum on deposits below INR 2 crore if you are depositing the amount for 3 years or more. Bank of Baroda Fixed Deposit Interest Rates range from 2.90% - 6.30% per annum. Senior Citizens can get upto as much as 6.30% per annum on their deposits below INR 2 crore. In the case of any emergency, you can also get a loan against your FD without providing any additional documents.
DCB Bank Fixed Deposit
DCB Bank could be the best option for you if you are looking for high-interest rates on your deposit. Do you know that with the DCB Bank Fixed Deposit scheme, you can earn upto 6.95% per annum on the single deposit of anything below INR 2 crore? Well, you certainly can! It’s just that the fixed deposit must run for a tenure of 36 months or more. So, when you are opting for a short-term tenure, you can also get substantial returns with a DCB Bank Fixed Deposit, quite different from its competing products.
DCB Bank provides several FD schemes loaded with special features and competitive interest rates. These schemes are DCB Regular FD Scheme, DCB Suraksha, DCB Tax Saver, DCB Zippi Online, etc. You can easily open an FD scheme online or go to any of the nearest branches of DCB Bank to do so.
YES BANK Fixed Deposit
Do you know that you can earn upto 7% per annum on the Fixed Deposit opened at YES BANK if you are a normal individual and 7.75% per annum if you are a Senior Citizen on deposits below INR 2 crore? Well, this is one of the many reasons that so many people opt for a YES BANK Fixed Deposit. YES BANK Fixed Deposit Interest Rates usually range from 3.25% - 7.25% per annum. YES BANK is one of the leading private sector banks of India that provide a wide range of banking products. When it comes to the Fixed Deposit facility, individuals can opt for a flexible tenure of 7 days to as long as 10 years. Other than this, you can also get the Overdraft against your FD upto 90% of the overall FD value.
Utkarsh Small Finance Bank
Apart from banks, you can choose Small Finance Banks (SFBs) as they also provide lucrative returns. Some of the SFBs provide interest rates ranging from 8% to 9% on the Fixed Deposits. Apart from this, Senior Citizens also get a 0.50% additional interest rate. One such small finance bank is Utkarsh Small Finance Bank that provides you upto 8% per annum on their fixed deposits. On average, fixed deposit interest rates range from 4.5% to 8% per annum. The tenure ranges from 7 days to 3652 days that you can choose according to your convenience.