Fixed Deposit Interest Rates: Top Banks Offering Highest Returns On FDs In May
Top lenders are offering FD schemes with interest rates up to 8% per annum for a tenure of at least one year.
Fixed Deposits (FDs) are seen as reliable investment avenues for risk-averse investors. Traditionally, FD schemes are known for offering secured returns, and the flexibility over tenure and the deposit amounts caters to the needs of a wider section.
Despite their relatively moderate returns, investors heavily rely on FDs, as they offer diversification and stability, particularly when compared with market-linked instruments.
FDs ensure capital preservation, making them ideal for conservative investors and long-term financial planning. Top lenders offer different interest rates for FD, often ranging over 6.5% per annum for a tenure of at least one year. HDFC Bank, SBI, ICICI Bank and Axis Bank, among others, are some popular lenders in this segment. Many banks are currently offering interest rates up to 8% per annum on FDs for a tenure of at least one year.
Notably, the FD interest rates are often impacted by the Reserve Bank of India’s key lending rate reviews. Leading banks revise their lending rates and interest rates on various deposit schemes with every change in the repo rate by the RBI.
Given the RBI’s decision to reduce lending rates by 25 basis points to 6% in April, several banks have now reduced the interest rates offered by them to attract deposits from customers.
For instance, from April 19 onwards, HDFC Bank has revised its FD interest rates for different tenures. For an FD below Rs 3 crore, the bank is offering 6.60% if the deposit tenure is between 1 year and 15 months.
For a duration of one to two years and a similar amount, the SBI is offering 6.70% interest rates from April 15 onwards. Meanwhile, Axis Bank is offering 6.70% returns for less than Rs 3 crore in value if the tenure of the FD is one year to one year and 10 days.
Canara Bank, IndusInd Bank, Bank of Maharashtra, Bandhan Bank and Yes Bank are also offering similar returns on FD deposits for similar durations.
Suryoday Small Finance Bank offers one of the highest FD interest rates at 8% for above one year to 15 months for an amount below Rs 3 crore.
