Banks have been pushed to raise the interest rates on fixed deposits across investment tenures after the Reserve Bank of India hiked the repo rate six consecutive times. The total rate hike by the RBI stands at 250 basis points with the expectation that it will curb the rising inflation. There are very few banks that offer an interest rate of 8 per cent to regular citizens. Here are the banks that offer interest rates between 8 per cent and 9 per cent to regular citizens.
The small banks offer the highest interest rate for fixed deposits with the average interest rate at 7.6 per cent for FDs with a time span of three years.
Unity Small Finance Bank
The bank is currently offering the highest interest rate of 9 per cent for a tenure of 1001 days. For the tenure of 501 days to 201 days you can expect the interest of 8.75 per cent. These updated rates have been active since February 15, 2023. For senior citizens the interest rate ranges from 4.50 per cent to 9.50 per cent.
Unity Small Finance Bank was founded by Centrum Financial Services and BharatPe.
Utkarsh Small Finance Bank
The small finance bank is offering the interest rate of 8.25 per cent on FDs for the time span of 700 days. If you want to invest in FDs for two years and above then the interest rate is at 7.50 per cent. For senior citizens the investment for 365 to 699 days will give them an interest of 8.50 per cent, whereas the tenure of 700 days has an interest rate of 9 per cent.
Fincare Small Finance Bank
Fincare Small Finance Bank is offering the highest interest rate 8.41 per cent for 1000 days. If you want to invest for 36 months 1 to 42 months then the interest rate hikes to 8.25 per cent.
Suryoday Small Finance Bank
The bank is offering an interest rate of 8.51 per cent for 999 days. The interest for 1 year 6 months to 2 years is 8.01 per cent. For senior citizens the interest rate on FDs for 999 days is 8.76 per cent.
AU Small Finance Bank
AU Small Finance Bank is currently offering FDs with 8 per cent interest for investment of up to three years. If you decide to invest Rs 1 lakh in FD in this bank then you will get Rs 1.27 lakh in the time span of three years.
Deutsche Bank
The foreign bank is offering an interest of 7.75 per cent interest on FDs for three years.
Other banks
Banks like IDFC First Bank, Indusind Bank and Equitas Small Finance Bank are offering interest rates of 7.75 per cent on FDs with three-year tenure. DCB Bank is offering an interest rate of 7.60 per cent, while Union Bank of India offers an interest rate of 7.30 per cent.
