Fixed deposits after RBI holds repo rate steady: Banks with best returns

Fixed deposits are a safe bet for risk-averse investors and are unlikely to change terms soon

The Reserve Bank of India (RBI) on Wednesday held the repo rate unchanged at 5.50 per cent and continued with a neutral stance. No major changes are expected in fixed deposit (FD) terms as policy rates stay steady, but investors may still avail of attractive returns, especially from smaller lenders.

 

Here’s a look at FD rates in August, as compiled by Paisabazaar.com.

 

Small finance banks lead the pack  Smaller banks offer the most competitive FD rates, especially for tenures of one to five years.

• slice Small Finance Bank: Offers 8.50 per cent FD rate, the highest, for an 18-month tenure. 
• Jana Small Finance Bank: 8.00 per cent rate for five-year FDs, and 7.50 per cent for three-year deposits. 
• Suryoday Small Finance Bank: 8.20 per cent on five-year FDs and 7.75 per cent on three-year FDs. 
• Equitas and ESAF Small Finance Banks: Up to 7.60 per cent for 444 and 888-day tenures.

 

Below is a detailed table of Small Finance Banks’ offerings and tenures

 

Bank Fixed Deposit Rates
Bank Name	Interest Rates (p.a.)
	Highest slab		1-year tenure (%)	3-year tenure (%)	5-year tenure (%)
	%	Tenure
SMALL FINANCE BANKS
AU Small Finance Bank	7.10	2 years 1 day to 3 years	6.35	7.10	6.75
Equitas Small Finance Bank	7.60	888 days	7.25	7.25	7.00
ESAF Small Finance Bank	7.60	444 days	4.75	6.00	5.75
Jana Small Finance Bank	8.00	5 years	7.25	7.50	8.00
slice Small Finance Bank	8.50	18 months 1 day to 18 months 2 days	6.75	8.25	7.75
Suryoday Small Finance Bank	8.20	5 years	7.50	7.75	8.20
Ujjivan Small Finance Bank	7.45	2 years	7.25	7.20	7.20
Unity Small Finance Bank	7.75	1001 days	6.50	7.25	7.25
Utkarsh Small Finance Bank	7.65	2 years to 3 years	6.00	7.65	7.25

 

Note: While returns are attractive, depositors should check the creditworthiness and deposit insurance coverage (up to Rs 5 lakh per bank account) before parking funds in these banks. 

Private-sector banks offer moderate yields

• Private banks are offering FD rates between 6.25 per cent and 7.40 per cent. 
• DCB Bank and Bandhan Bank: Offer up to 7.40 per cent for two- and three-year tenures. 
• RBL Bank: Offers 7.20 per cent two- and three-year tenures. 
• IndusInd Bank and YES Bank: Provide 7.00 per cent for one- and three-year tenures.

 

Below is a detailed table of Private Banks’ offerings and tenures

   

Bank Fixed Deposit Rates
Bank Name	Interest Rates (p.a.)
	Highest slab		1-year tenure (%)	3-year tenure (%)	5-year tenure (%)
	%	Tenure
PRIVATE SECTOR BANKS
Axis Bank	6.60	18 months to 10 years	6.25	6.60	6.60
Bandhan Bank	7.40	2 years to less than 3 years	7.25	7.25	5.85
City Union Bank	6.75	365 days	6.75	6.65	6.25
CSB Bank	6.80	13 months	5.00	5.75	5.75
DBS Bank	6.55	376 days to 600 days	6.30	6.40	6.25
DCB Bank	7.40	27 months to less than 28 months	7.00	7.00	7.00
Federal Bank	6.70	444 days	6.40	6.60	6.25
HDFC Bank	6.60	18 months to less than 21 months	6.25	6.45	6.40
ICICI Bank	6.60	2 years 1 day to 10 years	6.25	6.60	6.60
IDFC FIRST Bank	6.75	2 years 1 day to 3 years	6.30	6.75	6.60
IndusInd Bank	7.00	1 year 1 month to 2 years	6.75	6.75	6.65
Jammu & Kashmir Bank	7.30	888 days	6.75	6.75	6.50
Karur Vysya Bank	6.85	444 days	6.60	6.60	6.60
Karnataka Bank	6.65	555 days	6.50	6.15	6.15
Kotak Mahindra Bank	6.60	391 days to 23 months	6.25	6.40	6.25
RBL Bank	7.20	2 years 1 day to 3 years	7.00	7.20	6.70
SBM Bank India	7.50	5 years	7.05	7.05	7.50
South Indian Bank	6.60	1 year 7 days	6.50	6.20	5.70
Tamilnad Mercantile Bank	7.05	400 days (TMB400)	6.80	6.25	6.25
YES Bank	7.00	3 years to less than 5 years	6.65	7.00	6.75

 

Public-sector banks: Stable but lower returns

• State-run banks remain conservative on deposit rates, with most capping offers around 6.50–7.00 per cent. 
• Central Bank of India offers 7.00 per cent for ultra-long tenures of 2222 or 3333 days. 
• Indian Overseas Bank and Punjab & Sind Bank offer 6.75 per cent and 6.80 per cent respectively for select tenures.

 

Below is a detailed table of public-sector banks’ offerings and tenures

 

Bank Fixed Deposit Rates
Bank Name	Interest Rates (p.a.)
	Highest slab		1-year tenure (%)	3-year tenure (%)	5-year tenure (%)
	%