Managing your money is never easy and if you are looking to multiply your hard-earned saving money, the choice is always difficult. While there are multiple options that can be explored to manage the money, a fixed deposit remains a go-to choice for people who want assured return without a risk. Unlike other investment options, fixed deposits have none or almost zero risks involved, making it a great option for steady earnings. However, the recent decision of the Reserve Bank of India to keep the repo rate unchanged at 4 per cent, to counter the economic disruption caused by COVID-19 pandemic,has made various banks lower their FD interest rate.
FDs are favourite investing options for the ‘risk adverse’ middle class and senior citizens who prefer it because of guaranteed return, low risk and easy investment plans. Many of these retired senior citizens not only prefer it for managing their retirement savings but also as a means of regular income, and the recent decision by banks have disrupted their plans.
However, there are still some private and small finance banks that are offering above-average returns on fixed deposits. These banks could be a great option for you in case you are looking to invest a portion of your hard-earned money in FDs after going through the detailed terms and conditions of investment.
Here is the list of top 5 banks offering up to 7% return on fixed deposits for a tenure of 1-2 years.
1 Jana Small Finance Bank: 7.00 per cent p.a.
2 Surodaya Small Fin Bank: 6.75 per cent p.a.
3 DCB Bank: 6.70 per cent p.a.
4 IndusInd Bank: 6.50 per cent p.a.
5 Yes Bank: 6.50 per cent p.a.
The list only includes the highest advertised rate of return for a tenure of 1-2 years and takes account of investment in normal FDs amounting to any amount less than 1 crore. Senior citizens may get preferential rates. The above mention data takes into account the interest rates mentioned on these bank websites till April 30, 2021.