Banks Providing High Interest Rate on Fixed Deposits (FDs)

Recently, the fixed deposit (FD) rates have been increased at leading Indian banks. FD is a financial instrument provided by banks /NBFCs that provides investors a high interest rate than a regular savings account, until the given maturity date.

Unity Small Finance Bank FD Rate

With effect from August 20, 2022, Unity Small Finance Bank (USFB) has changed the interest rates on its non-callable bulk deposits. On term deposits of more than Rs 2 crore for terms of 2-3 years and 3-5 years, this bank is giving interest rates of up to 7.1%.

Under non-callable deposits, premature withdrawal is not allowed. Additionally, for deposits having a tenor of six months or longer, interest on these deposits will be computed on a quarterly compounding basis, according to a statement from USFB. The bank further stated that due to the urgency of the necessity, senior citizens are not eligible for non-callable deposits.

Prior to July 6, 2022, USFB had revised its FD rates for retail investors. Senior citizens can presently earn up to 8.15% interest on term deposits with tenors of 2-3 years and 3-5 years. USFB provides a maximum rate of 7.65% interest on FDs with terms of 2-3 years and 3-5 years for customers under the age of 60.

IDBI Bank New FD Rate

With effect from August 22, 2022, the IDBI Bank has also increased the interest rates on term deposits across a range of tenors.

“The Bank is now offering the highest rate of 6.55% on select tenors. The Bank has also introduced a limited period special 500 days deposit under the Amrit Mahotsav FD scheme, offering a peak rate of 6.70. The Amrit Mahotsav offer is a limited offer available up to September 30, 2022,” according to a statement from IDBI Bank.

For US Dollar-designated FCNR (B) deposits, IDBI Bank is additionally providing a unique bucket of 500 days at a peak rate of 3.63%.

ICICI FD Rate Revised

The ICICI Bank updated the fixed deposit rates for a few tenors last week. Retail fixed deposit rates for terms of one year to five years have been established by a private sector bank between 5.50% and 6.10%, with rates for one-year deposits being 5.50%.