- What are those lenders that provide an interest rate of 7% and more on Fixed Deposits?
- Also know about Features, Tenure, Minimum Deposit Amount in this post
Fixed Deposits (FDs) have been quite popular among the customers by helping them save their hard-earned money while also earning them a substantial interest over time. But since March 2020, the Reserve Bank of India (RBI) has been on a rate cut spree due to the ongoing COVID-19 pandemic. The lending rates have reduced by upto 115 basis points (1.15%) in the last six months that has resulted in lenders cutting their FD interest rates to balance the margins.
On average, FD interest rates have come down to 3.50 – 6% per annum after the multiple cuts in the past few months. Despite multiple cuts, some Banks, Non-Banking Finance Companies (NBFCs) and Small Finance Banks are still offering FD Interest Rates of 7% per annum and more. So, if you are someone who wants to earn a higher interest on your deposits, these lenders could be the perfect choice for you.
FD Interest Rates of 7% per annum and more will be for a definite period only. So, you need to open an FD for this fixed period if you want to earn a higher interest. First, we are showing all those lenders that provide FD Interest rates of 7% and more in the below table. The table will also mention the period for which you can get the said interest rates on your FD. After this, we will explain each one of them in detail.
Lenders Providing FD Interest Rates of 7% per annum and More
|Lenders||Interest Rate (In Per Annum)||Minimum Deposit Tenure Needed to Earn 7% and Above|
|YES BANK||7.00% (Regular Citizens)|
7.00%-7.25% (Senior Citizens)
|1-3 Years (Regular Citizens)|
6 Months-10 Years (Senior Citizens)
|PNB Housing Finance Ltd.||7.10%-7.20% (Senior Citizens)||36 months - 120 months (Senior Citizens)|
|IndusInd Bank||7.00% (Regular Citizens)|
7.15%-7.50% (Senior Citizens)
|1 year - Below 3 years (Regular Citizens)|
1 year - 61 months and above (Senior Citizens)
|RBL Bank||7.15% (Regular Citizens)|
7.00%-7.65% (Senior Citizens)
|36 months - 36 months and 1 day (Regular Citizens)|
12 months - 240 months (Senior Citizens)
|DCB Bank||7.00%-7.45% (Senior Citizens)||12 months - 120 months (Senior Citizens)|
|Jana Small Finance Bank||7.00%-7.50% (Regular Citizens)|
7.00%-8.00% (Senior Citizens)
|More than 1 year - 5 year (Regular Citizens)|
181 days - 10 years (Senior Citizens)
|Utkarsh Small Finance Bank||7.25%-7.50% (Regular Citizens)|
7.00%-8.00% (Senior Citizens)
|365 days - 3652 days (Regular Citizens)|
181 days - 3652 days (Senior Citizens)
|AU Small Finance Bank||7.00%-7.25% (Senior Citizens)||12 months 1 day - 120 months (Senior Citizens)|
|Ujjivan Small Finance Bank||7.00% (Senior Citizens)||1 year - 2 years (Senior Citizens)|
|Equitas Small Finance Bank||7.10%-7.35% (Regular Citizens)|
7.20%-7.95% (Senior Citizens)
|1-3 Years (Regular Citizens)|
1-10 Years (Senior Citizens)
So, these are the top 10 lenders offering FD interest rates of 7% per annum and more to both Regular and Senior Citizens for different periods. Now, it’s time to understand the features of each of them in detail. So, without any further delay, let’s get to it.
YES BANK Fixed Deposit
Being one of the finest private sector banks of India, YES BANK provides a range of Fixed Deposit Schemes to its customers. Ranging from 3.25% - 7.25% per annum, customers enjoy secured and higher interest in their fixed deposits for 7 days to as long as 10 years. But if you are a Regular Citizen and want to avail FD interest rates of 7% and more, opt for the period of 1 year to 3 years. For Senior Citizens, this period would range from 6 months to 10 years.
YES BANK also provides the much-needed flexibility of maintaining your deposits in accessible units, so you can access them anytime you want without breaking your deposit. Other than this, customers can also opt for the Overdraft facility in case you need urgent funds at interest rates 1% over and above the FD rates.
PNB Housing Finance Limited Fixed Deposit
PNB Housing Finance Limited is one of the popular NBFCs due to its amazing home finance related products. But do you know that PNB HFL also provides FD Interest Rates of more than 7% per annum to Senior Citizens? Well, yes, if you are a Senior Citizen and want to earn a higher interest on your fixed deposit, PNB HFL could be suitable for you. PNB HFL FD Interest Rates usually range from 6.20% - 7.20% per annum. However, interest rates depend on the FD scheme, the tenure of the deposit, and the frequency at which interest is earned.
To earn interest rates of 7% per annum and above, the ideal tenure for Senior Citizens is 36 to 120 months (10 years). While for Monthly Income Schemes, the minimum deposit is fixed at INR 25,000, the customer can open any other scheme with a minimum deposit of INR 10,000. The best thing about the PNB HFL Fixed Deposit is you can also open a Joint FD with a maximum of three individuals. In difficult times, you can also opt for a Loan Against your FD with a loan amount upto 75% of the total principal deposit. The rate of interest will be 2% above the maximum FD interest rates.
IndusInd Bank Fixed Deposit Scheme
To get FD Interest rates of 7% and above, IndusInd Bank Fixed Deposit Scheme could also be the right choice for both Regular and Senior Citizens. Usually ranging from 2.50% - 6.00% per annum, FD interest rates also depend on the age of the applicant, deposit amount & tenure. For example, to get FD rates of more than 7% per annum, Regular Citizens will need to choose a tenure of 1 year to below 3 years. On the other hand, the ideal period for Senior Citizens ranges from 1 year to 61 months and above.
The minimum deposit for every individual is fixed at INR 10,000 and the overall tenure can be as short as 7 days. A customer can choose from Multiple Fixed Deposit Schemes. Other than schemes, you can also choose the frequency of interest payout from Monthly, Quarterly, Half-yearly, Annually, or at Maturity. The FD scheme can be opened both via Online and Offline by submitting a few basic documents.
RBL Bank Fixed Deposit Scheme
An FD Tenure of 12 to 240 months and 36 months to 36 months 1 day would be perfect for Regular and Senior Citizens, respectively, who want to earn an interest rate of 7% per annum and more on their RBL Bank FD scheme. With a wide range of schemes like Regular FD, Tax Savings FD, Senior Citizen FD and Flexi Sure FD, customers can earn interest rates on their deposits that range from 3.25% - 7.45% per annum. Among all the options available in the market, it is one of those few options that provide such higher FD rates.
If you are an existing customer of RBL Bank, you have the convenience of booking deposits via Internet Banking and Mobile Banking in simple steps. Other than this, you can also get a Nomination Facility on your FD scheme. You can also make a partial or premature withdrawal of your deposits with a penalty of 1% per annum on the interest rates.
DCB Bank Fixed Deposit Scheme
Coming from one of the leading private banks of India, DCB Bank FD Interest Rates range from 4.75 to 7.45% per annum. But for Senior Citizens who want to earn an interest rate of 7% per annum and more, the ideal tenure will be 12 to 120 months. Regular Citizens can open an FD for a tenure of 36 to 120 months to get an FD interest rate of 6.95% per annum which is quite close to 7% per annum.
With the DCB Bank Fixed Deposit Scheme, customers can get flexible interest payment options on a monthly, quarterly, semi-yearly, or yearly basis. An individual can also get a loan or overdraft facility against his or her fixed deposit for upto 80% of the total principal deposit amount. The minimum deposit amount by which one can open a DCB Bank FD Scheme is INR 10,000.
Jana Small Finance Bank Fixed Deposit Scheme
With the interest rates as high as 8% per annum, the Jana Small Finance Bank Fixed Deposit scheme could be the right choice for those who are looking to get FD rates of 7% and more. Considered as one of the most innovative financial institutions, Jana Small Finance offers a regular fixed deposit scheme that helps customers grow their money. With multiple payout options, customers can choose according to their convenience.
If customers want to earn FD rates of 7% per annum and more, a suitable tenure would be 181 days to 10 years for Senior Citizens. While for Regular Citizens, it is more than 1 year to 5 years. Any individual can start his or her FD with a deposit amount as low as INR 1,000.
Utkarsh Small Finance Bank Fixed Deposit Scheme
A customer has the option to open an FD at Utkarsh Small Finance Bank for as short as 7 days, but to get an interest rate of 7% per annum and more on the deposits, the ideal tenure would be 365 to 3652 days for Regular Citizens. On the other hand, Senior Citizens can enjoy higher interest rates with a tenure starting from 181 days upto 3652 days as they get additional returns.
The minimum investment amount is fixed at INR 1,000 while there is no limit on the maximum investment amount. Customers can also withdraw their deposits before the completion of the tenure but not within a tenure of 7 days, although the bank will charge a 1% penalty on the applicable interest rate.
AU Small Finance Bank Fixed Deposit Scheme
FD Interest rates usually range from 3.75% to 7.25% per annum and the customer can choose from Quarterly and Monthly Payout options according to their convenience. Senior Citizens can enjoy higher rates if they choose a tenure of 12 months 1 day to 120 months. However, Regular Citizens would have to contend with FD interest rates of less than 7% per annum. The minimum investment amount is fixed at as low as INR 1,000 so that anyone can open an AU Small Finance Bank FD Scheme. The premature withdrawal penalty will be the same as most of the other lenders – 1% on the applicable rate.
Ujjivan Small Finance Bank Fixed Deposit Scheme
The rate of interest paid on the Ujjivan Small Finance Bank FDs tends to vary according to FD tenure and amount. As of now, one can earn interest rates of 3.05%-7% per annum. But regular citizens can’t get the highest limit of 7%. It’s senior citizens who can earn FD interest rate of 7% per annum. For that, they will need to choose a tenure of 1 to 2 years. The minimum amount required to open an Ujjivan Small Finance Bank FD is fixed at INR 1,000 and thereafter, in multiples of INR 100.
A customer can open an FD scheme with upto INR 15,000 at Centre Meetings Branch. Existing customers can open via the Internet or Mobile Banking in a hassle-free manner.
Equitas Small Finance Bank Fixed Deposit Scheme
With a Fixed Deposit Scheme at Equitas Small Finance Bank, you can earn returns of 3.60%-7.95% per annum. Senior Citizens can earn interest rates as high as 7.95% on their deposits on choosing a tenure of more than 1 year to upto 10 years. On the other hand, regular citizens can get FD interest rates of 7% per annum and more on choosing a tenure of 1 to 3 years.
The best thing about Equitas Small Finance Bank FD Scheme is the customer doesn’t need to pay any penalty on premature withdrawal after 6 months of the deposit. Senior Citizens don’t have to pay any penalty for all FDs booked on or after December 2, 2019.