With global tensions and volatile equity markets making investors cautious, fixed deposits (FDs) are once again emerging as a relatively stable and low-risk investment option .
However, interest rates vary widely across banks and deposit tenures, so comparing options before investing is essential to maximise returns.
Below is a snapshot of FD rates offered by several banks, based on data compiled by Paisabazaar.
Small finance banks generally offer higher FD interest rates than large commercial banks to attract deposits.
Key takeaway: Some small finance banks are offering up to 8% FD interest, particularly for mid-term deposits between 2 and 5 years.
Large private banks generally offer slightly lower but more stable rates, with stronger brand trust and deposit safety perception.
Key takeaway: Most private banks currently offer around 6-7% annual interest for common tenures.
Public sector and international banks tend to offer slightly lower FD returns but higher perceived safety.
For conservative investors during volatile market phases, FDs remain a stable way to preserve capital, though returns may not always beat inflation.