Many people, especially senior citizens, prefer investing in fixed deposits as FDs generally have a lower risk as compared to other types of investment tools.
If you too are fond of FDs, then this is for you.
Recently many banks have increased their fixed deposit rates where some banks are offering interest rates, up to 8.1% on 1-3-year tenures. This can be a great option for those looking for high and stable FD returns.
The interest rate for most of the FDs remains constant throughout the tenure of the deposit, which offers stability to the investors and often investors can predict the returns.
However, the actual interest rate may vary depending on the terms and conditions set forth by the bank. '
FDs offer flexibility in terms of the duration; hence, you can select your maturity periods which are generally from one week to ten years.
Here are the FD interest rates from top banks for terms of 1 to 3 years, as per a TOI report, citing ET:
Axis Bank:
- Highest interest rate: 7.2%
- Highest interest rate tenure: 17 months to less than 18 months
- Range: 6.70% to 7.20% for 1-3 years
Bandhan Bank:
- Highest interest rate: 7.85%
- Highest interest rate tenure: 500 days
- Range: 7.45% to 7.85% for 1-3 years
DCB Bank:
- Highest interest rate: 8%
- Highest interest rate tenure: 25 months to 26 months
- Range: 7.15% to 8% for 1-3 years
Federal Bank:
- Highest interest rate: 7.5%
- Highest interest rate tenure: 500 days
- Range: 6.80% to 7.50% for 1-3 years
HDFC Bank:
- Highest interest rate: 7.25%
- Highest interest rate tenure: 18 months to less than 21 months
- Range: 6.60% to 7.25% for 1-3 years
ICICI Bank:
- Highest interest rate: 7.2%
- Highest interest rate tenure: 15 months to 2 years
- Range: Not specified for 1-3 years
IDFC First Bank:
- Highest interest rate: 8%
- Highest interest rate tenure: 500 days
- Range: 6.50% to 8% for 1-3 years
IndusInd Bank:
- Highest interest rate: 7.65%
- Highest interest rate tenure: 1 year to 2 years
- Range: 7% to 7.65% for 1-3 years
Kotak Mahindra Bank:
- Highest interest rate: 7.4%
- Highest interest rate tenure: 390 days to less than 23 months
- Range: 6.50% to 7.40% for 1-3 years
RBL Bank:
- Highest interest rate: 8.1%
- Highest interest rate tenure: 18 months to 2 years
- Range: 7.50% to 8.10% for 1-3 years
Bank of India:
-Highest interest rate: 7.25%
-Highest interest rate tenure: 2 years
-Range: 6.8% to 7.25% for 1-3 years
Canara Bank:
-Highest interest rate: 7.25%
-Highest interest rate tenure: 444 days
-Range: 6.85% to 7.25% for 1-3 years
IndianBank:
-Highest interest rate: 7.25%
-Highest interest rate tenure: 400 days - IND SUPER
-Range: 6.10% to 7.25% for 1-3 years
Punjab National Bank:
-Highest interest rate: 7.25%
-Highest interest rate tenure: 400 days
-Range: 6.75% to 7.25% for 1-3 years
Punjab & Sind Bank:
-Highest interest rate: 7.4%
-Highest interest rate tenure: 444 days
-Range: 6.20% to 7.25% for 1-3 years
State Bank of India:
-Highest interest rate: 7.1%
-Highest interest rate tenure: 400 days - Amrit Kalash
-Range: 6.80% to 7% for 1-3 years
Union Bank of India:
- Highest interest rate: 7.25%
- Highest interest rate tenure: 399 days
- Range: 6.75% to 7.25% for 1-3 years
Okay, but what about the tax? Interest from Fixed Deposits (FDs) is taxable and subject to Tax Deducted at Source (TDS). TDS is applicable on interest exceeding Rs 40,000 annually, or Rs 50,000 for individuals aged 60 or above.
Furthermore, with FD laddering strategy, which involves dividing investments into multiple FDs with varying maturity dates, you can spread your risk and optimize returns. With this, you can have regular access to funds while taking advantage of higher interest rates on longer-term deposits.