Is the era of fixed deposit hikes over?

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Private sector lender, RBL Bank, has reduced the highest rate of interest it used to give on fixed deposits. The private bank has reduced its highest rate of 8.10 per cent to 8 per cent on tenure of 18 months to 2 years.  A few days ago, public sector lender, the Punjab National Bank (PNB) had also reduced fixed deposit interest rates on two different tenures. On tenure of 1,204 days, now depositors will get only 6.4 per cent while, on another of its 1,895 days tenure, the public lender has cut the rate to 6.35 per cent from 6.5 per cent, earlier. The PNB currently gives 7.25 per cent on FDs of 400 days to general citizens. Last month, many small finance banks (SFBs) also cut their respective highest interest rates on term deposits.

The question is that is the era of fixed deposit interest rate hike over? Will banks no more hike rates from hereon. Lenders in India have massively hiked rates over the last three years. But is it that rate hike phenomenon has reached its peak. So, if you haven’t yet booked any fixed deposit to avail of high deposit rates, then, here you can check top five banks which are currently giving the highest FD rates in the country. No prizes for guessing, SFBs currently give highest interest on FDs in the nation.

Let’s see the highest interest rates that small finance banks currently give on respective FDs in the country:

Top 5 Banks with Highest RoI On Fixed Deposits:

Unity Small Finance Bank is giving the highest interest on term deposits in the country. General citizens can get as high as 9.00 per cent while senior citizens can get as high as 9.50 per cent on tenure of 1001 days. No other bank currently gives this high rates.

While, with Suryoday SFB, general citizens can get as high as 8.65 per cent and the elderly can get as high as 9.10 per cent on 2 years and 2 days tenure.

Shivalik Small Finance Bank on the other hand is giving as high as 8.55 per cent on tenure of 1 year to 18 months. Senior citizens will get an additional of 0.50 per cent i.e. 9.05 per cent on FD of this tenure.

Ujjivan Small Finance Bank is giving as high as 8.50 per cent on tenure of 15 months. Senior citizens get an additional of 0.50 per cent i.e. 9.00 per cent on FD of this tenure.

Another SFB, the Jana Small Finance Bank is giving 8.50 per cent interest rate on FDs of 365 days. Senior citizens get as high as 9.00 per cent on this FD.