When it comes to investment, many people immediately think of the stock market. The allure of higher returns drives many to consider investing in shares. However, with higher returns often comes higher risks. It’s important to remember that attractive returns don’t have to rely solely on the stock market. For those looking for safer investment options, fixed deposits (FDs) offered by banks can also yield significant profits.
In this article, we will explore banks that are currently offering attractive interest rates on fixed deposits. While these offers are generally available to all customers, senior citizens tend to enjoy additional benefits. Some banks are providing FD returns as high as 10% per annum, making it an advantageous option for various investors. Here, we present our list of the top five banks offering high returns on fixed deposits, based on information from paisabazaar.com.
Top Banks Offering High Returns on Fixed Deposits
Unity Small Finance Bank
Unity Small Finance Bank offers a competitive interest rate of 7.85% for a one-year fixed deposit. For three-year and five-year terms, the interest rates rise to 8.15% and 9% respectively for regular customers. Senior citizens can enjoy an additional 50 basis points (bps), bringing their rate to 9.50%, making this bank a leader in FD returns.
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank offers an interest rate of 8% for one-year FDs, 8.50% for three-year FDs, and 7.75% for five-year FDs. Additionally, senior citizens receive an extra 60 bps, resulting in an attractive FD rate of 9.10%.
Shivalik Small Finance Bank
Shivalik Small Finance Bank offers a one-year FD interest rate of 6%, 7.50% for three years, and 6.50% for five years. Senior citizens are offered a favorable FD return of 9.05%.
Jan Small Finance Bank
Jan Small Finance Bank offers an interest rate of 8.25% for one and three-year fixed deposits, while the five-year FD interest rate is 7.25%. Senior citizens can benefit from higher rates, enjoying returns up to 8.75%.
DCB Bank
DCB Bank offers an FD interest rate of 7.10% for one year, 7.55% for three years, and 7.40% for five years. With added benefits for senior citizens, they can earn a maximum FD rate of 8.55% with an additional 50 bps.
Conclusion
Fixed deposits can be an attractive investment option for those looking to secure their capital while earning decent returns. While the stock market may offer higher returns, the associated risks can be daunting for many investors. Banks like Unity, Utkarsh, Shivalik, Jan, and DCB provide excellent options for fixed deposits, especially for senior citizens who can take advantage of higher interest rates. Always consider your financial goals and risk appetite before making investment decisions.
