2 Private Sector Banks That Offer 6.5% To 7% Interest On Fixed Deposits

2 Private Sector Banks That Offer 6.5% To 7% Interest On Fixed Deposits

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Yes Bank FD interest rates

Days Interest rate, regular Interest rate, senior citizens
9 months to 5.25% 5.75%
1 Year to 6.00% 6.50%
3 Years to 6.25% 7.00%

Yes Bank offers an interest rate of as high as 7% for senior citizens, who invest for 3-years or more. This is probably the best it gets, when we compare with other large private sector banks. Now the question that investors always have is the safety, for the time being there seems to be no issues with Yes Bank. After a stake by State Bank of India, things seems to be alright at the bank.

In any case, it is better to spread risks and amounts up to Rs 5 lakhs are in any case is insured by the DICGC.

IndusInd Bank deposits and interest rates

IndusInd Bank deposits and interest rates

Days Interest rate, regular Interest rate, senior citizens
1 Year to below 1 Year 6 Months 6.00% 6.50%
2-5 years 6.00% 6.50%
61 months and above 5.50% 6.00%

Broadly speaking the interest rates being offered by IndusInd Bank is around that 6 to 6.5% mark from 1 to 5 year tenures for regular and senior citizens deposits. We believe that among large private sector bank peers this is one of the best.

It’s a better idea to go for the short term tenure of 1 year or so, as we believe that there could be a modest uptick in interest rates.

Go for short term deposits

Go for short term deposits

We advocate investors to go for deposits that are short term in nature. For example, one can consider just 1-2 year deposits as there could be a slight up tick in interest rates, if not large spike.

Also, we have never heard of large private banks seeing a collapse and they are generally taken over. So, deposits of the larger private sector banks are safe. One can also get interest rates around the same levels at the post office provided the holding period is a bit longer. All in all, the interest rates offered by the banks mentioned above are much better than peers.

Original news source Credit: www.goodreturns.in



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