Does anyone know which bank is best for FD? I want high interest.
Before finalizing which bank is best for FD, I went to my dad to understand what all things I need to consider. He said I need to keep in mind the interest rates offered, flexibility to withdraw and the safety. I wasn’t sure about the last part. He said that I should only go for banks that are insured by DICGC. He mentioned that DICGC insures deposits of up to Rs. 5,00,000 for both principal and interest.
Taking these notes, I started my research and shortlisted Utkarsh Bank, Unity Small Finance Bank, Suryoday Bank, SBI, IndusInd Bank. SBI made it to the list only because I have an account here already.
Anyway, I had compiled a list of interest rates and DICGC insurance status. I will share it with you here:
| Bank/ NBFC | Interest Rate | DICGC Insurance Coverage |
|---|---|---|
| Utkarsh Small Finance Bank | Up to 8.50% | Yes |
| Unity Small Finance Bank | Up to 8.25% | Yes |
| Suryoday Bank | Up to 8.40% | Yes |
| SBI | Up to 7.05% | Yes |
| IndusInd Bank | Up to 7.00% | Yes |
I opened the FD account in Utkarsh Small Finance Bank at 8.00% for 3 years tenure.
You can do your due diligence and see which bank is best for fixed deposit according to you. Just make sure that you understand the interest rates properly as the maximum limit is often carrying the 0.50% inclusion for senior citizen FDs.
I hope you have gained some insights from my detailed answer. Ask away more questions in case you are still confused.
Suryoday Bank is giving up to 8.40% interest rates. You can check out FD options here. This is much better than 5%-6% given by popular banks in India like HDFC, ICICI, PNB, ICICI, etc.