Even as the rate cut cycle has started globally with the US Federal Reserve slashing the key interest rates by a huge 50 basis points (bps), the RBI is still expected to keep its repo rate unchanged amid persisting food inflation. However, after back-to-back rate hikes in the past two years, four are currently offering fixed deposit (FD) interest rates over 8 per cent per annum.
Bandhan Bank is offering FD interest rates in the range of 3 per cent-8.05 per cent, depending up to tenure of the deposit and individual credit risk. RBL Bank offers 8.10 per cent per annum, SBM Bank India is giving an 8.25 per cent returns, while YES Bank is offering an 8 per cent per annum.
Over and above this, senior citizens (those over the age of 60 years) get extra 0.5 per cent interest rate per annum on the FD.
How to Open A Bank FD?
A bank FD can be opened both online and offline. The FD account offline can be opened by visiting bank and fulfiling KYC norms. An FD account can be opened with as little as Rs 100, though this amount may vary between banks and NBFCs. FDs can be opened for durations ranging from 7 days to 10 years. Depositors can withdraw funds before maturity, though a penalty may apply.