THESE banks offer up to 7% interest on one year fixed deposits                                                                   

As per the data collected by Bank Bazaar smaller private banks are offering a higher rate of interest up to 7 per cent on one-year FDs.

Risk-averse investors prefer to invest in fixed deposits (FDs) considering it to be the safest, as returns are assured. It has been observed that clients usually prefer investing in FDs in the same bank in which they hold their savings accounts. However, in today's day and age, it is necessary to know that there are banks which allows investing in FDs even if a person does not hold a savings account in the particular bank.

Amid the current pandemic situation, depositors have been hit hard because of the reducing interest rates on FDs across tenures. It has become essential to first inquire with the bank and then invest. At present, smaller private banks are offering a higher rate of interest up to 7 per cent on one-year FDs. As per the data collected by Bank Bazaar these interest rates are high compared to those offered by leading foreign banks.

IndusInd Bank and Yes Bank offer 7 per cent interest, RBL Bank offers 6.85 per cent while Standard Chartered, DBS Bank and Deutsche Bank offer 6.30 per cent, 4.15 per cent and 4 per cent respectively on one-year FDs.

Also, private banks such as Axis Bank, HDFC Bank and ICICI Bank offer 5.15 per cent, 5.10 per cent and 5 per cent while established public sector banks such as Bank of Baroda and the State Bank of India are offering 4.90 per cent interest for the same tenure.

The Deposit Insurance and Credit Guarantee Corporation (DICGC) which is a subsidiary of the RBI has secured investments up to 5 Lakh in fixed deposits. However, the minimum investment amount differs across banks. At private banks, the cost ranges from Rs 100 to Rs 10,000 and at foreign banks it is Rs 1,000 to Rs 20,000 for a one-year FD.

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