If you are planning to open a fixed deposit (FD) account in the near future, this information will be very useful to you. There are certain small finance banks and public sector banks in the country offering interest rates exceeding 8% to investors. Let us take a look at which banks offer what interest rates for specific tenures.

What should you keep in mind before opening an FD?
Whether you choose a large bank or another institution, always compare the interest rates offered by different banks. Additionally, invest funds in an FD that you will not need for the next 2–3 years, as premature withdrawal would result in a loss of benefits.

Which banks offer what interest rates? 

Interest rates for Small Finance Banks:

Bank Name    1 Year (%)    3 Years (%)
5 Years (%)
Suryoday Small Finance Bank    7.25    7.25    8.25
Utkarsh Small Finance Bank    6    7.5    7
Equitas Small Finance Bank    7.1    7.1    7
ESAF Small Finance Bank    6    6    5.75
Jana Small Finance Bank    7    8    7.77
Shivalik Small Finance Bank    6    7.5    6.25
Ujjivan Small Finance Bank    7.25    7.25    7.2
Slice Small Finance Bank    6.25    7.5    7
AU Small Finance Bank    6.35    7.4    6.75

Interest rates for Public Sector Banks:

Bank Name    1 Year (%)    3 Years (%)
5 Years (%)
Bank of India    6.5    6.7    6
Punjab & Sind Bank    5.85    5.85    5.95
Bank of Baroda    6.25    6.25    6.3
Central Bank of India    6.1    6    6
Bank of Maharashtra    6.4    5.25    5
Indian Bank    6.1    6.05    6
Canara Bank    6.25    6.25    6.25
Indian Overseas Bank    6.5    6.1    6.1
Punjab National Bank    6.25    6.3    6.35
Union Bank of India    6.2    6.1    6
State Bank of India    6.25    6.3    6.05

What do experts say about FDs? 

While Fixed Deposits (FDs) are safer than other investment options, they offer lower interest rates. However, those who wish to avoid market risks can opt for FDs. Experts advise spreading your FDs across different banks so that if one bank fails, you do not lose your entire investment. Since there is a coverage limit of ₹5 lakh for FD deposits, parking a large sum in a single bank means you would not be able to recover the full amount in the event of a bank failure.

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